ASSOCIATED CEMENT PRODUCTS,NAGPUR vs. ITO WARD 4(1), NAGPUR, NAGPUR

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ITA 612/NAG/2025Status: DisposedITAT Nagpur10 February 2026AY 2019-20Bench: IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR (Through virtual) BEFORE DR. MANISH BORAD (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the CIT(A) dismissed the appeal without delving into the merits. Citing a jurisdictional High Court ruling, the Tribunal held that the CIT(A) is obligated to decide appeals on merits. Therefore, the assessee deserves another opportunity.

What were the facts?

The assessee, a partnership firm, declared income of ₹ 91,310/- for AY 2019-20. The AO made an addition of ₹ 1,33,300/- for unaccounted sales. The assessee appealed to the CIT(A) but failed to appear on multiple hearing dates, leading to the dismissal of the appeal in limine.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal in limine due to non-appearance of the assessee without considering the merits of the case.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 144B,Section 250(6)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: DR. MANISH BORAD

Hearing: 02.02.2026Pronounced: 10.02.2026

This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”], dated 18/09/2025 passed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of assessment order dated 13.01.2025 passed u/s. 147 r.w.s. 144B of the Act for the Assessment Year 2019-20. (A.Y.)

2.

At the outset, learned counsel for the assessee submitted that due to non-compliance on the three dates of hearing given by the Ld.CIT(A), appeal of the assessee has been dismissed in limine.

2 ITA.No.612/NAG/2025 (Associated Cement Products) 3. Ld. Departmental Representative (DR), on the other hand, did not object to the request made by the learned counsel for the assessee.

4.

I have heard rival contentions and perused the records placed before me. I observe that the assessee is a partnership firm and declared income of ₹ 91,310/- in the return of income for A.Y. 2019-20 furnished on 30.10.2019. Based on the information about notable transaction by the Investigation Wing of Nagpur, Ld.AO carried out the assessment proceedings u/s. 147 r.w.s. 144B of the Act and made the addition for unaccounted sales at ₹ 1,33,300/-.

5.

Against the above addition, assessee preferred appeal before the Ld.CIT(A), but then failed to appear on the dates of hearing. Even though, assessee has given the details of the addition as well as proof submissions in the statement of facts claiming that impugned addition is uncalled for, however, Ld.CIT(A) dismissed the assessee’s appeal in limine due to non- compliance at the end of the assessee on the various dates of hearing granted by the Ld. CIT(A). Since Ld.CIT(A) has dismissed the appeal of the assessee in limine without dealing with merits of the case, in the interest of justice and being fair to both the parties, I deem it appropriate that assessee deserves one more opportunity and accordingly, restore all the issues raised in the instant appeal to the file of Ld. CIT(A).

3 ITA.No.612/NAG/2025 (Associated Cement Products) Considering the ratio laid down by the Hon'ble Jurisdictional High Court in the case of PCIT vs. Premkumar Arjundas Luthra (HUF) Bombay) [2017] 297 CTR 614 (Bom.) that Ld.CIT(A)/ NFAC is obliged to dispose of the appeal on merits, even in an ex-parte order, I hereby direct the Ld.CIT(A) to adjudicate all the issues raised in the instant appeal by way of passing speaking order after duly considering the details filed by the assessee as well as settled judicial precedents as contemplated u/s. 250(6) of the Act. Needless to mention that Ld.CIT(A) shall grant fair hearing of opportunity to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.

6.

In the result, appeal of the Assessee is allowed for statistical purposes.

Order pronounced in the open Court on 10.02.2026 Sd/- Sd/- [MANISH BORAD] ACCOUNTANT MEMBER Dated : 10th February, 2026 vr/-

4 ITA.No.612/NAG/2025 (Associated Cement Products) Copy to

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