SANGAMAM POWER PROJECTS PRIVATE LIMITED,BHOPAL vs. DCIT/ACIT 5(1), BHOPAL
Facts
The assessee filed appeals against ex-parte assessment orders for AY 2016-17 and AY 2017-18. The assessee contended that due to organizational issues and staff changes, they could not provide necessary documentation to the lower authorities. The Assessing Officer (AO) made substantial additions in both years, and the Commissioner (Appeals) confirmed these additions ex-parte.
Held
The Tribunal noted that the issues were not examined on merits due to lack of complete evidence. The CIT(A) orders also did not comply with Section 250(6) of the Act. Given the ex-parte nature of the assessments and the need for verification of primary evidence, the Tribunal deemed it appropriate to grant one more opportunity to the assessee.
Key Issues
Whether the ex-parte assessment orders and the CIT(A) orders are sustainable when the assessee was unable to present its case due to genuine difficulties, and whether the matters should be remanded for fresh adjudication.
Sections Cited
143(3), 144, 147, 144B, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, AM:
The captioned two (2) appeals are filed by same assessee, the details of these appeals are as under:
ITA No. 928/Ind/2025 is directed against order of first-appeal dated (i) 26.08.2025 passed by learned Commissioner of Income-tax (Appeals), NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 26.12.2018 passed by learned DCIT/ACIT, 5(1), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 for assessment year 2016-17.
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
(ii) ITA No. 929/Ind/2025 is directed against order of first-appeal dated
26.08.2025 passed by learned Commissioner of Income-tax (Appeals),
NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order
dated 25.02.2025 passed by learned Assessment Unit of Income-tax
Department [“AO”] u/s 147 r.w.s. 144 & 144B of Income-tax Act,
1961 for assessment year 2017-18.
Since these appeals relate to the same assessee, are represented by
same counsels and underlying facts are similar; they were heard together at
the request of parties and are being disposed of by this consolidated order
for the sake of convenience, brevity and clarity.
Ld. AR for assessee at first drew us to Para 3 of assessment-order of
AY 2016-17 to demonstrate that there was a participation by assessee
during assessment-proceedings and the assessee filed submissions to AO.
Thereafter, he referred Pages 10, 11, 12, 17 of assessment-order where the
AO has made certain additions by recording the details of documents not
filed by assessee and ultimately assessed total income as high as Rs.
5,81,23,000/- against returned loss of Rs. 21,95,177/- by assessee. Thus,
according to Ld. AR, although the AO passed assessment-order u/s 143(3)
but the same is substantially in the nature of ex-parte assessment for lack of
evidences.
Thereafter, Ld. AR drew us to Para 2 of assessment-order of AY 2017-
18 to demonstrate that there was a participation by assessee during
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
assessment-proceedings and the assessee filed certain submissions to AO
but the assessee could not respond to the final show cause notice issued by
AO. Therefore, the AO passed ex-parte assessment-order u/s 144 and
assessed total income as high as Rs. 3,64,66,273/-.
Thereafter, Ld. AR drew us to the impugned orders of first-appeals
passed by CIT(A) to demonstrate that the assessee sought adjournments
from CIT(A) for filing details/documents but, however, was unable to make
representation before CIT(A) due to which the CIT(A) has passed ex-parte
orders. While submitting so, Ld. AR narrated that the CIT(A) has simply
confirmed the order passed by AO without following the mandate of section
250(6) of the Act which provides “The order of the Commissioner (Appeals)
disposing of the appeal shall be in writing and shall state the points for
determination, the decision thereon and the reason for the decision.”.
Therefore, the orders of CIT(A) are liable to be set aside.
Ld. AR thereafter fairly submitted that in past the assessee-company
had been passing through a difficult phase owing to various setbacks and
organisational issues, including frequent changes in staff and absence of
regular personnel to attend tax matters, and that the business activities had
also substantially declined. Therefore, the assessee could not make effective
representation before lower-authorities. He, however, submitted that the
assessee has now compiled the requisite details/documents and is in a
position to make an effective representation. He, therefore, made an humble
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
prayer that, in the interest of justice, both of these matters may be restored
to the file of the AO for fresh adjudication after considering assessee’s
submissions.
Per contra, Ld. DR for revenue submitted that the CIT(A) has given
ample opportunities to assessee but the assessee remained non-compliant.
He submitted that no single submission was made by assessee to CIT(A) and
the assessee kept on seeking adjournments only. He submitted that in the
situation, the CIT(A) has rightly dismissed assessee’s appeals and there is
no infirmity in the action of CIT(A), hence the impugned orders must be
upheld. Without prejudice, he submitted that if the bench takes a view to
remand these matters to lower authorities, he would press for remanding to
CIT(A).
In rejoinder, Ld. AR submitted that since the assessment-orders are
ex-parte, it would be more appropriate to remand these matters to AO and
not to CIT(A). He submitting that remanding to AO would enable the
department to make proper verification and adjudication. He acknowledged
in stronger terms that the assessee shall definitely make an effective
representation before AO and also comply with any direction given by bench
in this regard.
We have considered rival submissions of both sides and perused the
material available on record including the assessment-orders passed by AO
and the impugned orders of first-appeals passed by CIT(A). We observe that
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
for AY 2016-17 the assessment has been framed u/s 143(3) determining
total income at Rs. 5,81,23,000/- as against returned loss of Rs.
21,95,177/-, whereas for AY 2017-18 the assessment has been framed ex-
parte u/s 144 determining total income at Rs. 3,64,66,273/-. From the
assessment-orders, it is evident that substantial additions have been made
by the AO primarily on account of non-furnishing of details/evidences by
the assessee. Further, the impugned appellate orders show that the appeals
have also been disposed of by CIT(A) ex-parte for want of representation from
the assessee’s side. In such circumstances, we find merit in the contention
of the Ld. AR that the issues involved in both years have not been examined
on merits with the benefit of complete evidences. We also note that the
CIT(A), while confirming the additions, has not discussed the issues in the
manner contemplated u/s 250(6) of the Act, which mandates that the
appellate order shall state the points for determination, the decision thereon
and the reasons for such decision. Considering the totality of facts,
including the explanation of the assessee regarding earlier non-compliance
and the submission that requisite details/documents are now available, we
are of the view that, in the interest of substantial justice, one more
opportunity deserves to be granted to the assessee to substantiate its case.
Since the assessments themselves are ex-parte in substance and the
additions require verification of primary evidences, we deem it appropriate to
restore both of these matters to the file of the AO for fresh adjudication. In
fact, we see no harm in remanding these matters to the file of AO.
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
Accordingly, the impugned orders of the CIT(A) for both years are set aside
and at the same time, these matters are restored to the file of the AO for de
novo assessment in accordance with law after providing opportunity of being
heard to the assessee.
During hearing, it is assured by Ld. AR that the assessee shall
promptly furnish all requisite details/evidences, extend full cooperation to
AO and endeavour to get the fresh assessments completed in three effective
hearings. We expect assessee to ensure compliance of this assurance given
by Ld. AR. However, the AO shall be at liberty to grant more opportunities in
a judicious manner.
The Ld. AR further agreed that to offset the revenue’s efforts in dealing
assessee’s cases, the bench may impose suitable cost which shall be paid by
assessee. After a careful and judicious consideration, we impose a cost
of Rs. 10,000/- in each case upon assessee. The assessee shall pay such
cost to “Income-tax Department” through appropriate challan and shall
not claim any credit or refund of such payment. Further, the assessee
shall submit proof of payment to the AO during proceeding of fresh
assessment.
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Sangamam Power Projects Pvt. Ltd. ITA Nos.928 & 929/Ind/2025- AYs-2016-17 & 2017-18
Resultantly, these appeals are allowed for statistical purposes,
subject to payment of cost by assessee as mentioned above.
Order pronounced in open court on 27/02/2026
Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/ Dated : 27/02/2026
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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