NATURAL HERBAL PRODUCTS PLOT NO 38-B SICOP KATHUA ,KATHUA vs. INCOME TAX OFFICER WARD KATHUA HERRIAN PUTTAN KATHUA , KATHUA

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ITA 432/ASR/2025Status: DisposedITAT Amritsar04 February 2026AY 2013-2014Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member), SHRI UDAYAN DASGUPTA (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal accepted the assessee's plea that the bank account mentioned by the AO might not belong to them and that they could substantiate this. Therefore, the appeal was restored to the CIT(A) for fresh consideration, directing the assessee to prove their case.

What were the facts?

The assessee, Natural Herbal Products, did not file a return of income and was non-compliant during assessment proceedings. The AO made an addition of Rs. 50 lakhs as unexplained investment, representing an amount allegedly paid to M/s Om Trading Co. through the assessee's bank account. The CIT(A) confirmed this addition.

What were the issues?

The key legal issue was the addition of unexplained investment due to alleged payments from a bank account, which the assessee claimed was not theirs, and the lack of compliance during assessment and appellate proceedings.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, AMRITSAR

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & SHRI UDAYAN DASGUPTA, JM

(िनधा"रणवष" / Assessment Year: 2013-14) Natural Herbal Products ITO Ward Plot No. 38-B SICOP PE Kathua Herrian Pattan, Kathua बनाम/ C/o Shri P N Arora (Advocate) J & K - 184101 Vs. 3rd Floor, SRK Mall 14- Kennedy Avenue Mall Road, Amritsar Punjab - 143001 "थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFFN-8691-M (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : Sh. P.N. Arora (Advocate) – Ld. AR ""थ"कीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 03-02-2026 घोषणाकीतारीख /Date of Pronouncement 04-02-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013- 14 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 25-03-2025 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 147 r.w.s. 144 on 30-03- 2022. In the assessment order, Ld. AO made addition of unexplained investment for Rs.50 Lacs. The same represent amount paid by the assessee to M/s Om Trading Co. (prop. Shri Sanjeev Kumar Jain) through bank Account of the assessee. The assessee did not file the return of income and also remained non-compliant during assessment proceedings. The Ld. CIT(A) confirmed the same for want of any compliance from the assessee. Aggrieved, the assessee is in further appeal before us.

2.

The Ld. AR stated that the assessee is in a position to substantiate the fact that no such transaction has happened through the bank account of the assessee. The bank account as mentioned by Ld. AO does not belong to the assessee. Accordingly, another opportunity of hearing has been sought which has been opposed by Ld. Sr. DR.

3.

Considering the pleadings of Ld. AR, we accept the prayer of Ld. AR and restore the appeal back to the file of Ld. CIT(A) for fresh consideration with a direction to the assessee to plead and prove its case forthwith.

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