SABHARWAL FINANCE AND ESTATE LIMITED,G T ROAD DHARIWAL GURDASPUR vs. INCOME TAX OFFICER, GURDASPUR, INCOME TAX OFFICER, GURDASPUR

PDF · subscribers

ITA 161/ASR/2024Status: DisposedITAT Amritsar02 February 2026AY 2016-17Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member), SHRI UDAYAN DAS GUPTA (Judicial Member)2 pages

AI SummaryRemanded

What did the Tribunal hold?

The tribunal set aside the CIT(A)'s order and restored the appeal to the CIT(A) for fresh adjudication. The assessee was directed to present its case and provide evidence before the CIT(A).

What were the facts?

The assessee's appeal for AY 2016-17 challenged an addition of Rs. 70 lakhs made by the AO for non-genuine increase in share capital, which was confirmed by the CIT(A) due to the assessee's non-compliance. The assessee sought an adjournment during the ITAT hearing, which was rejected.

What were the issues?

The key legal issue was the addition of Rs. 70 lakhs on account of non-genuine increase in share capital and the assessee's lack of representation during the first appeal.

Which sections of the Income-tax Act were involved?

Section 143(3)

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 DAS GUPTA, JM

(िनधा�रण वष� / Assessment Year: 2016-17) Sabharwal Finance and Estate Pvt. Ltd. ITO Gurdaspur बनाम/ 237, Basant Avenue, Maqbool Road Punjab - 143521 Vs. Amritsar (Punjab) - 143001 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAKCS-2292-K (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Adjournment Application ��थ�कीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 02-02-2026 घोषणाकीतारीख /Date of Pronouncement 03-02-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016- 17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 31-01-2024 in the matter of an assessment framed by Ld. AO u/s 143(3) on 18-12-2018. At the time of hearing, Ld. counsel for assessee sought adjournment which was rejected considering the fact that the assessee remained non-compliant during first appeal also. The Ld. Sr. DR pleaded for dismissal of the appeal.

In the assessment order, Ld. AO made addition of Rs.70 Lacs on accounts of non-genuine increase in share capital. The Ld. CIT(A) confirmed the addition for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before us.

Keeping in mind the principles of natural justice, we set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to plead and prove its case forthwith.

The appeal stands allowed for statistical purposes. Order pronounced on 03rd February, 2026.

Recent GST High Court judgments

Search GST case law →