ITAT Nagpur Judgments — January 2025

The Tribunal acknowledged that the assessee failed to appear before the CIT(E), leading to the rejection. However, considering the principles of natural justice, the Tribunal felt one opportunity should be granted. The order of the CIT(E) was set aside.

The Tribunal set aside the order of the CIT(A) and restored the matter back to the CIT(A) for adjudication on merits. The assessee was directed to file an affidavit explaining the delay, and the CIT(A) was to condone the delay and pass a speaking order.

The Tribunal acknowledged that while the CIT(A) provided opportunities, the orders were ex-parte. Applying principles of natural justice, the Tribunal decided to grant one more opportunity to the assessee to present their case. The impugned orders of the learned CIT(A) were set aside, and the matters were remitted back for adjudication on merit after providing a reasonable opportunity of hearing.

The Tribunal noted that although the CIT(A) granted opportunities, the orders were ex-parte. Following principles of natural justice, the Tribunal set aside the CIT(A)'s orders and remitted the matter back for adjudication on merit after providing a reasonable opportunity of being heard to the assessee.

The Tribunal noted that while opportunities were granted, the orders from both the Assessing Officer and CIT(A) were ex-parte. Therefore, to adhere to the principles of natural justice, the matter was set aside and remitted back to the Assessing Officer for fresh adjudication on merit.

The Tribunal found that while the ex-parte dismissal was justified, to meet the ends of justice, the assessee should be given one opportunity to present their case before the CIT(A). The order of the CIT(A) was set aside, and the matter was remitted for fresh adjudication on merits.

The Tribunal condoned the delay due to sufficient cause shown in the affidavit, despite the assessee's non-appearance before lower authorities. The Tribunal set aside the orders of the CIT(A) and directed the Assessing Officer to re-adjudicate the appeal on merits after providing an opportunity of being heard to the assessee.

The Tribunal, while acknowledging the assessee's non-compliance and the ex-parte nature of the orders, felt that principles of natural justice required an opportunity to be heard. The order of the CIT(A) was set aside, and the matter was remitted back to the Assessing Officer for adjudication on merits.

The Tribunal noted that the orders of both the Assessing Officer and CIT(A) were ex-parte. Following the principles of natural justice, the Tribunal set aside the CIT(A)'s order and remitted the matter back to the Assessing Officer for a fresh adjudication on merit after providing the assessee with a reasonable opportunity of being heard.

The Tribunal noted that the orders passed by both the Assessing Officer and CIT(A) were ex-parte. Following the principles of natural justice, the Tribunal decided to provide the assessee one opportunity to substantiate their case.

The CIT(A) observed that the AO's additions for contractual receipts were not consistent with accountancy principles and provisions of the Income Tax Act. Consequently, the CIT(A) restricted the additions by applying a profit rate of 15% for contractual receipts and 50% for professional/technical fees for certain years, and confirmed the addition on cash deposits. The CIT(A) partly allowed the assessee's appeals.

The Tribunal found that the additions made by the Assessing Officer were not consistent with accounting principles or the Income Tax Act. Therefore, the CIT(A) rightly restricted these additions. The Tribunal found no infirmity in the CIT(A)'s orders.

The Tribunal noted the assessee's non-compliance and failure to prosecute the appeal. However, to uphold principles of natural justice and allow the assessee to present their case, the matter was set aside and remitted.

The Tribunal noted that while opportunities were granted, the CIT(A)'s order was ex-parte. Following principles of natural justice, one opportunity was granted to the assessee to present their case before the CIT(A). The order of CIT(A) was set aside and the matter was remitted back.

The Tribunal noted that both the Assessing Officer and the CIT(A) passed ex-parte orders. In the interest of natural justice, the Tribunal decided to set aside the order of the CIT(A) and remit the matter back to the Assessing Officer.

The Assessing Officer made additions for contract receipts, professional fees, and cash deposits. The CIT(A) found the additions inconsistent with accounting principles and reduced the additions by applying a profit rate of 15% for contract receipts and 50% for professional fees, partly allowing the assessee's appeals.

The Tribunal noted that while opportunities were granted, the orders from both the Assessing Officer and CIT(A) were ex-parte. Therefore, to follow principles of natural justice, the case was remitted back to the Assessing Officer to provide the assessee with an opportunity to substantiate their case on merit.

The assessee's counsel sought to withdraw the appeal. The Departmental Representative had no objection to the withdrawal. Therefore, the tribunal treated the appeal as withdrawn.

The Tribunal held that the addition made by the Assessing Officer and confirmed by the CIT(A) was not sustainable. The bank account was used for daily cash collection from society members, and the disputed amount did not belong to the assessee. The Tribunal found the assessee's explanation satisfactory.

The Tribunal noted that similar appeals had been allowed previously. Following the same, the Tribunal found the facts and grounds raised by the assessee to be similar and allowed the appeal.

The assessee appealed to the CIT(A) with a significant delay. The CIT(A) dismissed the appeal solely on the ground of delay without deciding the merits. The Tribunal observed that the CIT(A) had not decided the matter on merits as required by law and that substantial justice should be preferred over technical considerations.

The Tribunal noted that the tax effect on the disputed amount in the Revenue's appeals fell below the revised monetary limit, leading to their dismissal. For the assessee's appeal, the Tribunal found that an amount of Rs. 42,50,000 paid for a land purchase remained unexplained. However, considering it was paid by both the appellant and his wife, half of this amount (Rs. 21,25,000) was considered the appellant's unexplained expenditure under Section 69C.

The CIT(A) dismissed the appeal solely on the ground of delay without deciding the merits. The Tribunal noted that the CIT(A) failed to provide reasons for the decision as required by Section 250(6). Citing the Supreme Court's decision in Collector, Land Acquisition vs. MST Katiji, the Tribunal emphasized the importance of substantial justice over technical considerations.

The Tribunal held that the tax effect in the Revenue's appeals was below the revised monetary limit of ₹60 lakh, leading to the dismissal of the Revenue's appeals. For the assessee's appeal concerning the property purchase, the addition of Rs. 42,50,000 was reduced to Rs. 21,25,000, as half of the payment was deemed unexplained expenditure under section 69C, making this ground partly allowed.

The Tribunal considered the assessee's submissions regarding his ill-health as a heart patient, his status as a small businessman, and lack of knowledge of tax procedures. Acknowledging the need for substantial justice, the Tribunal decided to provide one final opportunity.

The Tribunal held that the assessee failed to provide satisfactory evidence to justify the bona fide conduct for the delay in filing the appeal. The reasons provided were considered nebulous and contradictory, thus not impressing confidence. Consequently, the Tribunal refrained from condoning the delay.

The Tribunal found that the grounds raised by the assessee were not effectively adjudicated by the CIT(A). Consequently, the matter was restored to the file of the CIT(A) for a fresh decision on the grounds raised.

The Tribunal found that the assessee had provided a cash flow statement and confirmation letters explaining the source of the Rs.10 lakh deposit. The Tribunal held that the assessee had discharged her initial onus of proving the source of the deposit and the Revenue had not brought any contrary material on record.

The Tribunal found that the lower authorities had not properly appreciated the facts and made a double addition. Since the money was sent through banking channels between husband and wife, taxing it in the hands of the assessee would amount to double taxation.

The Tribunal held that both the Assessing Officer and the CIT(A) passed ex-parte orders without deciding the grounds raised by the assessee on merits. As per section 250(6) of the Act, it is the duty of the CIT(A) to decide the appeal on merits. Therefore, the matter was restored to the Assessing Officer for a decision on merits after providing a reasonable opportunity of hearing to the assessee.

The tribunal noted that the assessee's application was rejected due to non-response to notices, without deciding on merits. The tribunal decided to remit the issue back to the CIT(E) for fresh adjudication, ensuring the assessee is given an opportunity to be heard and to present all relevant documents.

The Tribunal observed that both the lower authorities passed ex-parte orders without deciding the grounds on merits. As per section 250(6), it is the duty of the CIT(A) to decide appeals on merits, even if the assessee is absent. The Tribunal restored the matter to the Assessing Officer for a decision on merits.

The Tribunal held that the CIT(A) erred in dismissing the appeal. The mistake in reporting the 12A registration number was an inadvertent clerical error and should not lead to the denial of the entire exemption claim. The addition made by the AO/CPC was not justified.

The Tribunal found that the assessee had furnished all necessary details, and the Assessing Officer had accepted the return after thorough examination. The PCIT's invocation of revisional jurisdiction under section 263 was deemed inappropriate as there was no error in the Assessing Officer's order or prejudice to the revenue's interest. Consequently, the PCIT's order was quashed, and the Assessing Officer's order was restored.

The Tribunal held that the Assessing Officer did not provide reasons for assessment or penalty initiation, and the CIT(A) confirmed the penalty without appreciating the facts and the assessee's explanation. The Tribunal found that the assessee had neither concealed particulars of income nor furnished inaccurate particulars.

The assessee requested to withdraw the appeal to settle tax dues under the Direct Tax Vivad Se Vishwas Scheme, 2024. The Department had no objection to the withdrawal.

The Tribunal held that the payments were made to cultivators or their agents for the purchase of agricultural products, which falls under the exception provided in Rule 6DD(e). The evidence, including the statement recorded under Section 131, indicated that the individuals acted as agents for other cultivators. Therefore, the disallowance made by the Assessing Officer and upheld by the CIT(A) was not justified.

The Tribunal noted that the assessee was granted provisional registration, but failed to respond to notices from the CIT(E), leading to rejection without deciding on merits. Therefore, the matter was remitted back to the CIT(E) for fresh adjudication.

The Tribunal noted that it is not in dispute that the assessee is an agriculturist. It was held that for agricultural operations involving small quantities sold in cash, producing bills and vouchers is not always possible, and cash in hand cannot be ruled out.

The Tribunal held that both the Assessing Officer and the CIT(A) passed ex-parte orders without providing adequate opportunity to the assessee and without deciding the matter on merits. The assessee claimed to be a power of attorney holder and stated the transaction did not belong to him, offering to furnish details. The CIT(A) failed to consider the explanation for delay and confirmed the additions.

The learned CIT(A) is directed to condone the delay of 94 days. Consequently, the CIT(A) shall proceed to adjudicate the issue on its merit after considering all relevant submissions and providing the assessee a reasonable opportunity of being heard.

The Tribunal noted that both the lower authorities (AO and CIT(A)) passed ex-parte orders without deciding the grounds raised by the assessee on merits. As per Section 250(6) of the Act, it is the duty of the CIT(A) to decide appeals on merits even if the assessee does not appear. Therefore, the Tribunal restored the matter back to the Assessing Officer to decide the issue on merits.

The Tribunal acknowledged that the orders were ex-parte despite ample opportunities. Following principles of natural justice, the Tribunal set aside the CIT(A)'s orders and remanded the matters back for fresh adjudication on merits, ensuring the assessee receives a reasonable opportunity to be heard.

The Tribunal noted that although the CIT(A) provided opportunities, the orders were ex-parte. Applying the principles of natural justice, the Tribunal decided to grant the assessee one opportunity to substantiate their case.

The assessee had settled the dispute under The Direct Tax Vivad Se Vishwas Scheme, 2024, and the tax demand had been adjusted accordingly. The Revenue had no objection to the withdrawal of the appeal.

The CIT(A) dismissed the appeal due to the delay without deciding on merits. The Tribunal noted that substantial justice should be preferred over technical considerations when faced with delay, especially if the delay is not willful.

The Tribunal held that the CIT(A) dismissed the appeal solely on the grounds of delay without deciding the merits of the case. Citing the Supreme Court's decision in Collector, Land Acquisition vs. MST Katiji, the Tribunal emphasized that substantial justice should be preferred over technicalities, especially when the delay is not willful.

The CIT(A) reduced the estimated net profit rate to 10% of gross receipts, considering the assessee's previous and subsequent years' declared net profit rates (8.57% and 8.5%). The Tribunal found the CIT(A)'s order to be based on facts and judicial ratio and found no infirmity in it.

The Learned DR raised no objection to the withdrawal request. Therefore, the Judicial Member dismissed the appeal as withdrawn.

The Tribunal found that the penalty under Section 271(1)(b) was a mechanical application of the law, especially since the underlying addition was already made on a protective basis in the hands of the brother-in-law and a statement under Section 131 was recorded. The Tribunal concluded that the penalty provisions were applied without analyzing their true intent and therefore set aside the penalty of Rs. 30,000.