HMA AGRO INDUSTRIES LIMITED,AGRA vs. DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, AGRA, AGRA
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 252/Agr/2025 Assessment Year: 2014-15
HMA Agro Industries Limited, Vs. DCIT, Central Circle, 2/220, 2nd Floor, Glory Plaza, Agra. Opp. Soor Sadan, M.G. Road, Agra. PAN : AGRHI0452B (Appellant) (Respondent)
Assessee by Sh. Deependra Mohan, C.A. Department by Sh. Sukesh Kumar Jain, CIT (DR)
Date of hearing 15.07.2025 Date of pronouncement 30.07.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER: This appeal has been preferred by assessee against the impugned order dated 11.03.2025 passed in Appeal No.NFAC/2013-14/10019439 u/s.
250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2014-15, wherein learned CIT(Appeals) has dismissed assessee’s first appeal, confirming the demand of Rs.5,16,02,434/- raised
by the Assessing Officer on account of non-deduction/short deduction of tax at source including interest u/s. 201(1A), vide assessment order dated 30.03.2021 passed u/s. 201(1)/201(1A) of the Act.
ITA No.252/Agr/2025
This appeal has been preferred on the grounds, in addition to other
grounds, that the ld. CIT(Appeals) has erred in confirming the assessment
order in violation of the principles of natural justice, and that the Assessing
Officer was not justified in treating the appellant as an ‘assessee in default’.
Perused the records and heard learned representative for the
assessee and ld. departmental representative for the revenue.
The Learned AR has submitted that the impugned order passed by
the Learned CIT(Appeals) is not sustainable in law, having been rendered
without providing a reasonable opportunity of hearing to the assessee, in
violation of the principles of natural justice. It was further contended that the
Assessing Officer was also not justified in treating the appellant as an
'assessee in default' under the provisions relating to non-deduction or short
deduction of tax at source, without considering assessee’s reply to the
show cause notice in the correct legal and factual perspective. Learned AR
laid much emphasis on a very crucial fact that a detailed show cause notice
was issued by the Assessing Officer on 25.03.2021 at 9.39 p.m., requiring
the assessee to furnish its response by 26.03.2021. The assessment order,
however, was passed shortly thereafter on 30.03.2021. Although the
assessee had submitted its online reply on 26.03.2021, no reasonable
opportunity was provided to gather and furnish voluminous records and
supporting documentation necessary for proper verification of the TDS 2 | P a g e
ITA No.252/Agr/2025
liability. It was strongly urged that before arriving at the conclusion that the
assessee is an 'assessee in default', it was incumbent upon the Assessing
Officer to conduct a thorough verification of relevant facts and supporting
records at the assessment stage to ascertain assessee’s actual obligation
for TDS. The failure to undertake such verification at Assessing Officer’s
stage has resulted in a miscarriage of justice. In light of the above, the
Learned AR prayed that the matter be remitted back to the file of the
Assessing Officer for a fresh adjudication, directing the Assessing Officer to
afford adequate opportunity to the assessee to submit all relevant
evidences and records necessary for verification of its TDS obligations, and
thereafter pass a fresh order in accordance with law.
Ld. DR, on the other hand, has submitted that sufficient opportunities
were afforded to the appellant by ld. CIT(Appeals). He supported the
impugned order.
On perusal of the impugned order passed by the Learned
CIT(Appeals), it is observed that although notices under section 250 of the
Income Tax Act, 1961 (“the Act”) were issued, the assessee did not file any
response or written submissions in the appellate proceedings. Nonetheless,
it is evident that the Learned CIT(A) has proceeded to pass the order ex
parte without addressing the merits of the case, as mandated u/s. 250(6)
of the Act. 3 | P a g e
ITA No.252/Agr/2025
Further, a perusal of the assessment order reveals that the assessee
was not granted adequate opportunity to respond to the show cause notice.
The record indicates that a detailed show cause notice was issued during
the night of 25.03.2021, requiring the assessee to submit its response by
26.03.2021, owing to the impending limitation for completion of assessment
proceedings. In our considered view, the assessee could not have been
reasonably expected to gather and furnish complete documentary evidence
for verification within such an unreasonably short span of time. Given that
the matter pertains to the assessee’s obligation to deduct tax at source
(TDS) on various payments, as enumerated in the assessment order, a
thorough verification of facts supported by relevant documentation is
essential. In our considered view, such a thorough verification can be
effectively undertaken at the stage of the Assessing Officer. In view of the
above facts and in the interest of justice and fair play, we deem it
appropriate to set aside the impugned order and remit the matter back to
the file of the Assessing Officer. The Assessing Officer is directed to
adjudicate the matter afresh after affording the assessee adequate and
reasonable opportunity to furnish all necessary documentary evidence and
records in support of its contentions. The Assessing Officer shall also
ensure due observance of the principles of natural justice during the course
of proceedings. The appeal is liable to be allowed accordingly. 4 | P a g e
ITA No.252/Agr/2025
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 30.07.2025 .
Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.07.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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