DEEYA AGROTECH PRIVATE LIMITED,BURHANPUR vs. ITO BURHANPUR, BURHANPUR

ITA 492/IND/2025Status: DisposedITAT Indore19 February 2026AY 2013-14Bench: SHRI B.M. BIYANI (Accountant Member), SHRI PARESH M JOSHI (Judicial Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A)'s order was ex-parte and decided without proper opportunity of hearing, violating principles of natural justice. The Tribunal also noted that the assessee had failed to produce documentary evidence at the first appellate stage but expressed willingness to do so if given another opportunity. The revenue had no objection to setting aside the order and remanding the matter.

What were the facts?

The assessee filed an appeal against the order of the CIT(A) which dismissed its first appeal. The assessee's primary dispute was regarding the disallowance of cash payments for freight expenses amounting to Rs. 9,38,790/-, invoking Section 40A(3) of the Income Tax Act. The assessee contended that the CIT(A) decided the appeal ex-parte without proper opportunity of being heard.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without affording proper opportunity of hearing and whether the disallowance of freight expenses under Section 40A(3) was justified.

Which sections of the Income-tax Act were involved?

Section 253,Section 40A(3),Section 143(3),Section 147,Section 246A,Section 234B

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Respondent: Shri Ashish Porwal, Sr.DR
Hearing: 12.02.2026Pronounced: 19.02.2026

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1962,[ herein after referred to as the Act

for the sake of brevity] before this tribunal as and by way of a second appeal. The Assessee is aggrieved by the order

bearing Number:-ITBA/APL/S/250/2024-25/1074999215(1)

dated 25/03/2025 passed by the Ld. CIT (A) u/s 250 of the Act, which is herein after referred to as the “Impugned

order”. The Relevant Assessment year is 2013-14 and the DEEYA AGROTECH PRIVATE LTD. ITA No. 492/Ind/2025 - A.Y.2013-14

corresponding previous year is from 01.04.2012 to 31.03.2013. 2. Factual Matrix

2.

1 That as and by way of an Assessment order made u/s 143(

The order continues below.

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