DHARAMVEER RATHORE,GUNA vs. INCOME TAX OFFICER GUNA, GUNA
Facts
A search and seizure operation led to the discovery of documents related to unsecured loans. The assessee had given unsecured loans to entities linked to the P.N. group. Following this, the assessment was reopened, and the total income was assessed at Rs. 5,80,91,518/-. The CIT(Appeals) dismissed the assessee's first appeal ex parte.
Held
The Tribunal noted that the CIT(Appeals) passed an ex parte order without discussing the merits of the case, which is against the spirit of Section 250(6) of the Act. The Tribunal found it just and proper to remit the matter back to the CIT(Appeals).
Key Issues
Whether the CIT(Appeals) erred in dismissing the appeal ex parte without considering the merits, and whether principles of natural justice were violated.
Sections Cited
132, 147, 148, 143(2), 142(1), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 439/Agr/2025 Assessment Year: 2020-21
Dharamveer Rathore, Shastri Vs. Income-tax Officer, Market, Nayapura, Dr. S.P. Jain ke Guna. Pass, Guna, Gwalior PAN :CWNPR9153A (Appellant) (Respondent)
Assessee by Sh. Rajendra Sharma, Advocate Department by Sh. Shailendra Srivastava, Sr. DR
Date of hearing 17.12.2025 Date of pronouncement 29.12.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 18.07.2025 passed in Appeal No. NFAC/2019-20/10467367 by
the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2020-21, wherein the ld. CIT(Appeals) has dismissed assessee’s first
appeal ex parte.
ITA No.439/Agr/2025
Brief facts state that the assessee filed return of income for A.Y. 2020-
21, declaring total income of Rs.6,15,630/-. A search and seizure operation
u/s. 132 of the Act was carried out in the case of P.N. (Prem Nagar) group
(belong to Rathore family) on 09.01.2020. During the operation, various
incriminating documents regarding unsecured loan were seized. From the
seized documents, it was revealed that the assessee has given unsecured
loan of Rs.20 lacs to the entities related to P.N. group (Ghanshyam Rathore).
It was further noticed that the cash was deposited in assessee’s bank account
and immediately transferred to entities related to P.N. group (Ghanshyam
Rathore) in the name of unsecured loans. Case was reopened u/s. 147 and
notice u/s. 148 was issued. Statutory notices u/s. 143(2) and 142(1) of the Act
along with show cause notice were issued. Assessee was required to furnish
the nature of his business, books of account, bank account statement, balance
sheet, profit and loss account, source of cash deposits and details of
unsecured loans given by the assessee. Assessee made submissions before
ld. Assessing Officer. After considering the assessee’s response, assessment
proceedings were completed and assessed total income of Rs.5,80,91,518/-.
Assessee preferred first appeal before learned CIT(Appeals), who
dismissed assessee’s appeal ex parte.
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ITA No.439/Agr/2025
Assessee has preferred this second appeal on the ground, in addition to
others, that the impugned order has been passed in violation of the principles
of natural justice without affording sufficient opportunity of hearing to the
assessee.
Perused the records and heard learned representative for the assessee
and learned DR for revenue. Initially, learned AR filed an adjournment
application, which was rejected.
Perusal of the first appellate order shows that the assessee was issued
various notices during the first appellate stage on 22.05.2025, 03.06.2025,
26.06.2025 and 02.07.2025, but the assessee did not make any submission
during the first appellate stage, which compelled the ld. CIT(Appeals) to pass
ex parte impugned order. Such an irresponsive conduct of the assessee is not
acceptable. We, however, note that the ld. CIT(Appeals) has passed ex parte
order without any discussion on merits, which is not in consonance with the
spirit of section 250(6) of the Act, wherein learned CIT(Appeals) was expected
to state the points for determination, decision thereon and the reasons for the
decision. In such circumstances and in the interest of justice, we deem it just
and proper to remit the matter back to the file of learned CIT(Appeals) for
deciding the appeal afresh in accordance with law after taking assessee’s
submissions into consideration. We further direct the assessee to be diligent
and cooperative in attending the proceedings and making submissions before 3 | P a g e
ITA No.439/Agr/2025
the learned CIT(Appeals) for the expeditious and effective disposal. Needless
to say that learned CIT(Appeals) shall ensure the observance of the principles
of natural justice. The appeal is thus liable to be allowed for statistical
proposes.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 29.12.2025.
Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.12.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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