ITAT Jabalpur Judgments — September 2026

The Tribunal held that the additions made by the Assessing Officer were primarily on two counts: the alleged difference in turnover and the alleged unexplained cash deposits. The assessee contended that the turnover difference arose from the AO's erroneous comparison of bank credits (Rs. 1,84,50,445/-) with declared sales (Rs. 96,03,650/-). The assessee also claimed that cash deposits were out of business transactions recorded in the books of accounts. The Tribunal observed that the assessee had furnished some explanation regarding cash deposits and turnover, which should have been verified by the AO. In the absence of such verification by the lower authorities, the assessee's claims remained unverifiable. Consequently, the Tribunal set aside the impugned order and restored the assessment to the AO for fresh assessment, directing the assessee to furnish all material evidence. The grounds raised were allowed for statistical purposes.

The Tribunal noted that the facts and circumstances of the present case were identical to those in the Assessment Year 2018-19, for which a Co-ordinate Bench had previously decided the issue. The Tribunal referred to the co-ordinate bench's observation that the CIT(A) had rationally arrived at the basis of working unaccounted sales and, relying on jurisdictional High Court decisions, concluded that only the profit element embedded in unaccounted sales should be taxed. The Tribunal found no infirmity in the CIT(A)'s findings for AY 2018-19. Since the Departmental Representative did not point out any change in facts for the current assessment years, the Tribunal, in light of the Division Bench's decision for AY 2018-19 and 2019-20, deemed it appropriate to restore the issue to the file of the Assessing Officer for fresh consideration. The AO is directed to provide a reasonable opportunity of being heard to the assessee and decide the issue afresh in light of the Division Bench's order in the assessee's own case. The grounds raised in both appeals were allowed for statistical purposes. No issue was expressly left undecided.

The Tribunal noted that the facts and circumstances of the present case were identical to those in the Assessment Year 2018-19, for which a Co-ordinate Bench had previously decided the issue. The Tribunal referred to the co-ordinate bench's observation that the CIT(A) had rationally arrived at the basis of working unaccounted sales and, relying on jurisdictional High Court decisions, concluded that only the profit element embedded in unaccounted sales should be taxed. The Tribunal found no infirmity in the CIT(A)'s findings for AY 2018-19. Since the Departmental Representative did not point out any change in facts for the current assessment years, the Tribunal, in light of the Division Bench's decision for AY 2018-19 and 2019-20, deemed it appropriate to restore the issue to the file of the Assessing Officer for fresh consideration. The AO is directed to provide a reasonable opportunity of being heard to the assessee and decide the issue afresh in light of the Division Bench's order in the assessee's own case. The grounds raised in both appeals were allowed for statistical purposes. No issue was expressly left undecided.

The Tribunal held that the Ld. CIT(A) had dismissed the assessee's appeal ex-parte. The assessee contended that notices from the Ld. CIT(A) were not received, preventing them from representing their case. The Tribunal acknowledged that appellate proceedings should ordinarily be decided after providing a reasonable and effective opportunity of hearing, and the right of appeal is a substantive legal right. Depriving an assessee of this right due to non-appearance, especially when there's an explanation of non-receipt of notices, is not permissible. The issues raised by the assessee, concerning the Rs. 1,00,000 expenditure addition and the Rs. 9,30,000 addition under Section 50C (including the opportunity under Section 50C(2)), required examination on merits. Since the Ld. CIT(A) had not decided the matter on merits, the Tribunal, to sub-serve the principles of natural justice, set aside the impugned order. The appeal was restored to the file of the Ld. CIT(A) to be decided afresh by way of a speaking order on merits after the assessee co-operates and furnishes relevant evidence. The grounds raised were allowed for statistical purposes.

The Tribunal considered the assessee's letter dated 07/09/2026 seeking withdrawal of the appeal. The Tribunal perused the application for withdrawal, which was received with inward number 668 on 07/09/2026. Finding no reasons to reject the request, the Tribunal permitted the withdrawal of the appeal. Consequently, the appeal filed by the assessee was dismissed as withdrawn. The Tribunal did not decide on the merits of the original appeal or the rectification order. The operative direction was to dismiss the appeal as withdrawn.

The Tribunal permitted the withdrawal of the appeal. The reasoning was based on the assessee's explicit request to withdraw the appeal, supported by a letter dated 07/09/2026, and the Revenue's lack of objection. The Tribunal found no grounds to reject the withdrawal request. Therefore, the appeal filed by the assessee was dismissed as withdrawn. The operative direction was to dismiss the appeal. No issues were expressly left undecided.

The Tribunal condoned the delay in filing the appeal, finding that the reasons provided by the assessee, relating to pre-board examinations, constituted a 'sufficient and bonafide cause' and were neither intentional nor deliberate, citing the jurisdictional High Court decision in 'Neel Kumar Ajmera Vs PCIT'. On the substantive issue, the Tribunal noted that the Commissioner rejected the registration application primarily due to the lack of evidential documents and the assessee's failure to explain the fulfillment of conditions for registration. However, the Tribunal observed that the non-compliance was accidental and undeliberate. In the larger interest of justice, the Tribunal decided to grant one more effective opportunity to the assessee. The impugned order of rejection was set aside, and the matter was remanded to the Commissioner of Income Tax (Exemption) for de-novo consideration. The Commissioner was directed to issue a notice for fresh consideration, allowing the assessee to furnish all required documents for verification and examination, and to provide an effective hearing opportunity. The Tribunal explicitly stated that it was not commenting on the merits of the case.

The Tribunal held that the NFAC erred in dismissing the assessee's appeal in limine as time-barred. The Tribunal noted that the NFAC incorrectly calculated the delay by referencing the date of the assessment order rather than the date of receipt of the assessment order and demand notice by the assessee, which was 17/06/2024. The Tribunal found that the actual delay was only 78-79 days, as agreed by both parties. Furthermore, the Tribunal observed that the NFAC failed to provide the assessee with an opportunity to explain the delay, thereby violating the principles of natural justice. The Tribunal also noted that the assessment was completed ex-parte without sufficient evidence. Citing the decisions of the Hon'ble Supreme Court in Raheem Shah & ANR Vs Govind Singh & Ors and the Delhi High Court in CIT Vs Jansampark Advertising & Marketing (P) Ltd., the Tribunal emphasized the need for a justice-oriented approach and the duty of appellate authorities to remit files for fresh adjudication when assessments are carried out without reference to evidence. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Assessing Officer (AO) for de novo assessment, directing the AO to reframe the assessment afresh on merits, considering evidential material, written submissions, and explanations from the assessee. The issue of the delay was to be adjudicated by the NFAC, but the Tribunal opted to remand to the AO for reframing the assessment on merits.

The Tribunal found that the NFAC dismissed the appeal ex-parte without sufficient time for the assessee to respond and without considering the proviso to Section 251(1)(a). The Tribunal set aside the order and remanded the case to the AO for fresh assessment.

The Tribunal decided to condone the delay of 62 days in filing the appeal, finding that the reasons provided, supported by a medical certificate, constituted 'sufficient & bonafide cause' preventing the appellant from filing in time, relying on the jurisdictional High Court decision in 'Neel Kumar Ajmera Vs PCIT'. Regarding the rejection of the registration application, the Tribunal held that the rejection was predominantly due to the want of evidential documents and the appellant's failure to explain the fulfillment of conditions for registration under Section 10(23C)(ii). The Tribunal noted that the non-compliance was accidental and undeliberate. In the larger interest of justice, the Tribunal set aside the impugned order and remanded the matter to the Commissioner of Income Tax (Exemption) for de-novo consideration. The assessee is to be granted an effective opportunity to adduce fresh documents as directed by the CIT(E) and to rectify the application if law permits. The Tribunal explicitly stated it was not commenting on the merits of the case.

The Tribunal held that the rejection of the assessee's application for regular registration under Section 80G(5) and the cancellation of its provisional registration were unjustified due to a violation of the principles of natural justice. The Tribunal noted that as per Clause (ii)(b)(B) of the 2nd proviso to Section 80G(5) of the Act read with the proviso to Rule 11AA(5) of the Income Tax Rules, 1962, the CIT(E) was duty-bound to provide an opportunity in the form of a show-cause notice before rejecting the application and cancelling the provisional registration. The judgment stated that the assessee was not confronted with the negative findings forming the basis of the rejection. The notice issued was considered insufficient, not providing a real, reasonable, and effective opportunity, nor a reasonable period of not less than fifteen clear days. Citing the Supreme Court's pronouncements that if a statute provides a thing to be done in a particular manner, it must be done so, and the Patna High Court's decision, the Tribunal set aside the impugned order. The matter was remanded to the CIT(E) to provide the appellant with three opportunities to refute the reasons for rejection and cancellation. The merits of the case were not commented upon.

The Tribunal held that the CIT(A) erred in dismissing the assessee's appeal ex-parte. While acknowledging the CIT(A)'s constraint to dispose of the appeal due to CBDT guidelines for prompt disposal of old pending appeals, the Tribunal found that the proceedings suffered from a violation of the principles of natural justice. This was due to the absence of evidential material, written submissions, and assistance from the assessee. The Tribunal relied on the Delhi High Court's decision in CIT Vs Jansampark Advertising & Marketing (P) Ltd. and the Supreme Court's judgment in Raheem Shah & ANR Vs Govind Singh & Ors., emphasizing a justice-oriented approach over a rigid technical one. Consequently, the impugned order was set aside and remanded to the CIT(A) for de-novo adjudication on merits, with a direction to consider evidential material, written submissions, and explanations from the assessee, and to pass a speaking order in terms of Section 250(6) of the Act. No comment was made on the merits of the additions.

The Tribunal considered the assessee's request to withdraw the appeal, as communicated through a letter dated 15/09/2026. The Revenue did not raise any objection to this withdrawal. After reviewing the application and finding no grounds to reject it, the Tribunal granted permission for the withdrawal. Consequently, the appeal filed by the assessee was dismissed as withdrawn. The operative direction was to dismiss the appeal. No issues were left undecided.

The Tribunal held that the NFAC had issued five hearing notices to the assessee, allowing only six days for compliance, which is less than the reasonable period of at least fifteen clear days. The NFAC proceeded ex-parte without evidential material, written submissions, or assistance from the assessee, and without remanding the case to the AO, despite the proviso to Section 251(1)(a) of the Act. Relying on the Delhi High Court's decision in CIT Vs Jansampark Advertising & Marketing (P) Ltd., the Tribunal found that appellate authorities are duty-bound to remit files for fresh adjudication when assessments are carried out without reference to evidence. Therefore, the Tribunal set aside the impugned order and remanded the matter to the AO for de-novo adjudication, directing the AO to frame the assessment afresh on merits after considering evidential material, written submissions, and the assessee's explanation, and to pass a speaking order. The Tribunal explicitly stated that it was not commenting on the merits of the case.

The Tribunal held that once the tax dispute was settled under the Vivad Se Vishwas Scheme, the penalty imposed by the AO would not survive. The Tribunal also found that the defaults leading to the penalty under Section 271(1)(b) were not deliberate.

The Tribunal condoned the delay in filing the appeal. It held that the issue of cash deposits needed to be examined in conjunction with the assessee's books of account and business transactions, especially since the books were not rejected. The matter was restored to the CIT(A) for fresh examination.

The Tribunal held that the CIT(A) ought to have considered the exclusion period for limitation as directed by the Supreme Court and should not have dismissed the appeal solely on grounds of delay. Furthermore, the Tribunal found that the issue of addition on account of cash purchases was identical to a previous decision in the assessee's own case, which was decided in favor of the assessee.

The Tribunal held that once the tax dispute was settled under the Vivad Se Vishwas Scheme, the penalty imposed by the AO would not survive. The Tribunal also found that the defaults leading to the penalty under Section 271(1)(b) were not deliberate.

The Tribunal held that the addition for illegal gratification was wrongly deleted by the CIT(A) as the employer company's payments to the assessee were in the nature of salary/perquisites and taxable. The Tribunal restored the addition made by the Assessing Officer.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

The Tribunal held that the issues concerning disallowance of provisions for overdue interest and standard assets were decided by a coordinate bench and upheld by the High Court and Supreme Court, thus attained finality. However, the disallowance of provision for gratuity was set aside for verification by the AO.

The Tribunal held that the CIT(A) erred by not complying with Rule 46A of the Income Tax Rules, 1962, and Section 250(6) of the Act. The additional evidence was admitted and relied upon without giving the Assessing Officer an opportunity to examine it.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.

The Tribunal held that the addition for illegal gratification was wrongly deleted by the CIT(A) as the employer company's payments to the assessee were in the nature of salary/perquisites and taxable. The Tribunal restored the addition made by the Assessing Officer.

The tribunal held that once Form 15G/15H are received by the deductor, the liability to deduct tax at source under Section 194A ceases as per Section 197A. Therefore, Section 40(a)(ia) cannot be invoked merely for non-filing these forms with the designated authority, and the disallowance was set aside.

The Tribunal upheld the rejection of books but restricted the net profit estimation. It also ruled that interest income earned from short-term deposits and customer installments should be taxed under 'Income from Other Sources' as the assessee was not engaged in money lending or financial business.