GANPATI ENTERPRISES,AGRA vs. ITO WARD 1(1)(1), AGRA
Facts
The assessee, a partnership firm, filed its return of income for AY 2017-18. The Assessing Officer assessed total income at Rs.3,40,61,893/- as against the returned income of Rs.2,94,060/-. The CIT(Appeals) confirmed this assessment. The assessee filed an appeal before the ITAT.
Held
The ITAT noted that the assessee failed to make submissions despite opportunities, citing principles of natural justice not being observed. The Tribunal decided to give one last opportunity to the assessee and remit the matter back to the CIT(Appeals) for fresh adjudication.
Key Issues
Whether the addition to the assessee's income was justified, and if the principles of natural justice were followed in the ex parte assessment order.
Sections Cited
250, 143(1), 143(2), 142(1), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI MANISH AGARWAL
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 110/Agr/2025 Assessment Year: 2017-18
Ganpati Enterprises, Vs. Income-tax Officer, 94, Old Vijay Nagar Colony, Ward 1(1)(1), Agra. Agra – 282005 (UP). PAN : AANFG3520G (Appellant) (Respondent) Assessee by None Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 21.05.2025 Date of pronouncement 29.05.2025
ORDER Per Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 27.09.2023(communication of order on 03.02.2025) passed in Appeal No. CIT (APPEALS) 1, AGRA/10237/2019-20 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”), wherein the learned first appellate authority has confirmed assessee’s total assessed
income of Rs.3,40,61,893/- as against returned income of Rs.2,94,060/- determined by the Assessing Officer vide assessment order dated
ITA No.110/Agr/2025
18.10.2019 passed u/s. 144 of the Act and dismissed assessee’s first
appeal.
Briefly stating, the assessee is a partnership firm and e-filed its return
of income for A.Y. 2017-18 on 25.10.2017 showing income of Rs.2,94,060/-
The return was processed u/s. 143(1) of the Act. Thereafter, case was
selected for scrutiny. Statutory notices u/s. 143(2) and 142(1) of the Act
were issued and served upon the assessee. After considering the
submissions of the assessee, ld. Assessing Officer assessed total income
at Rs.3,40,61,893/- u/s. 144 of the Act.
Aggrieved, assessee preferred an appeal before the ld. CIT(Appeals),
who dismissed assessee’s appeal.
This appeal has been filed on the ground that the said addition in
assessee’s returned income is unjustified, arbitrary and legally untenable,
ignoring the deposits recorded in the assessee’s cash book.
None responded for the assessee. Perused the records and heard
the learned Departmental Representative in attendance, who supported the
impugned order.
Perusal of the impugned order shows that certain submissions were
made by the assessee through ITBA Portal before CIT(Appeals)-1, Agra.
However, after the migration of the appeal to NFAC, Delhi, the assessee
did not make any compliance/submission in response to notice dated 2 | P a g e
ITA No.110/Agr/2025
18.07.2023. Thereafter, another opportunity was granted to the assessee to
submit its submission latest by 23.08.2023, but for no avail. The
irresponsive conduct of the assessee cannot be appreciated. However, it
appears that the principles of natural justice have not been observed in
substance. The impugned order seems to have been passed ex parte for
want of assessee’s submissions. In the interest of justice and fair play, we
deem it just and appropriate to afford last opportunity to the assessee and
remit the matter back to the file of learned CIT(Appeals) for adjudication of
the matter afresh. We order accordingly. We further direct the assessee to
be diligent and cooperative in attending the hearings and making
submissions before the learned CIT(Appeals) for the expeditious and
effective disposal. Assessee shall refrain from seeking any adjournment but
for compelling and unavoidable reasons. Needless to say that learned
CIT(Appeals) shall ensure the observance of the principles of natural
justice. The appeal is liable to be allowed accordingly.
In the result, the appeal is allowed for statistical purposes. The
impugned order dt. 27.09.2023 is set aside. Order pronounced in the open court on 29.05.2025.
Sd/- Sd/-
(MANISH AGARWAL) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2025 3 | P a g e
ITA No.110/Agr/2025
*aks/-
