BHAGWATI INFRAESTATE PRIVATE LIMITED,JHANSI vs. INCOME TAX OFFICER-WARD-2(3)(1), JHANSI
Facts
The assessee filed a return declaring Nil income, claiming losses to be carried forward. The case was selected for limited scrutiny due to a large share premium received. The Assessing Officer completed the assessment and assessed total income at Rs. 52,25,000/- after the assessee failed to respond to notices. The CIT(Appeals) dismissed the assessee's appeal ex parte.
Held
The Tribunal noted that the CIT(Appeals) passed an ex parte order without substantial discussion on merits, failing to state points for determination, decision, and reasons as required by Section 250(6). The Tribunal also considered the assessee's grievance about not being provided a proper opportunity to be heard.
Key Issues
Whether the CIT(Appeals) was justified in passing an ex parte order without providing a proper opportunity of hearing and without considering the merits of the case.
Sections Cited
143(2), 142(1), 56(2)(viib), 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. 357/Agr/2025 Assessment Year: 2018-19
Bhagwati Infraestate Private Vs. Income-tax Officer, Limited, 24 MLB, Khanderao Ward 2(3)(1), Jhansi. Gate, Jhansi (UP). PAN :AADCB8354N (Appellant) (Respondent)
Assessee by Sh. Anurag Sinha, Advocate Department by Sh. Shailendra Srivastava, Sr. DR
Date of hearing 14.10.2025 Date of pronouncement 27.10.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 23.05.2025 passed in Appeal No. NFAC/2017-18/10051719 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 2018-19, wherein the ld. CIT(Appeals) has dismissed
assessee’s appeal ex parte.
ITA No. 357/Agr/2025
Briefly stated, assessee filed return of income on 31.03.2019
declaring total income as Nil, claiming current year’s losses of Rs.1,02,103
to be carried forward. Case was selected for limited scrutiny under CASS
for the reason ‘large share premium received during the year (verify
applicability of Sec 56(2)(viib) or any other relevant section)’. Statutory
notices u/s. 143(2) and 142(1) were issued on various occasions. However,
no response was made by the assessee. Assessing Officer, therefore,
completed assessment and assessed total income of the assessee at
Rs.52,25,000/-.
Aggrieved, assessee preferred an appeal before ld. CIT(Appeals),
who dismissed assessee’s appeal ex parte.
Appellant assessee has filed this appeal on the ground that ld.
CIT(Appeals) was not justified in passing ex parte order without providing
reasonable and proper opportunity of hearing to the assessee and without
considering the issue arising in first appeal on merits, contrary to the
provisions of section 250(6) of the Act.
Perused the records and heard learned representative for assessee
and learned Sr. DR for revenue.
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ITA No. 357/Agr/2025
At the very outset, we note that during the first appellate proceedings,
notices were issued on 13.05.2022, 03.01.2024, 08.04.2025, 23.04.2025
and 30.04.2025 to the appellant assessee. The assessee either sought
adjournments or remained irresponsive and did not make any submission
before the first appellate authority. We further note that the ld. CIT(Appeals)
has passed ex parte order without making any substantial discussion on
merits, whereas learned CIT(Appeals) was expected to state the points for
determination, decision thereon and the reasons for the decision as
provided u/s. 250(6) of the Act. Further, the grievance of assessee is also
that the impugned addition has been made by Assessing Officer without
providing proper and sufficient opportunity of hearing to the assessee to put
forth its case on merits. In the totality of facts and circumstances and in the
interest of justice, we deem it just and proper to afford an opportunity to the
appellant assessee to make his submissions before the Assessing Officer.
The matter is thus remitted back to the file of Assessing Officer for passing
order 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
the learned Assessing Officer for the expeditious and effective disposal.
Needless to say that learned Assessing Officer shall ensure the
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ITA No. 357/Agr/2025
observance of the principles of natural justice. The appeal is thus liable to
be allowed for statistical poruposes.
In the result, assessee’s appeal is allowed for statistical purposes.
The impugned order dated 23.05 .2025 is set aside.
Order pronounced in the open court on 27.10.2025.
Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27.10.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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