AJAY KUMAR GUPTA,PANIPAT V. INCOME TAX OFFICER, WARD- 1, PANIPAT, PANIPAT

ITA 1529/DEL/2025

AI Insights

The case involves Ajay Kumar Gupta, the appellant, who contested an assessment order passed by the Income Tax Officer, Ward-1, Panipat, Haryana, which disallowed Rs. 58,06,600 on account of bogus purchases, significantly increasing the assessed income from Rs. 11,70,620 to Rs. 69,77,220 for the Assessment Year 2018-19. The appellant's initial appeal to the Ld. CIT(A) was dismissed without a hearing, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal found that the principles of natural justice were violated as the Assessee was not given a chance to be heard, and thus remanded the case back to the Ld. CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775367 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Appeal Filed On: 12-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Assessee Lawyers: AMIT KAUSHIK; HIMANSHU
• Keywords: Opportunity of being heard; Bogus purchase; Principle of natural justice; Bogus
• Section: 147

Judgement Text

"1 ITA No.1529/Del/2025 Ajay Kumar Gupta Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘E’ NEW DELHI) BEFORE S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No. 1529/Del/2025 (A.Y. 2018-19) Ajay Kumar Gupta, 106, M/s Aggarwal yarn House, S. D. College Road, Panipat, Haryana-132103 PAN: AAPPG0343K Vs Income Tax Officer, Ward-1, Panipat, Haryana Appellant Respondent Assessee by Sh. Amit Kaushik, Adv, Sh. Himanshu Sharma, ITP Revenue by Sh. Dheeraj Kumar Jain, Sr. DR Date of Hearing 03/09/2025 Date of Pronouncement 12/09/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 10/01/2025 for the Assessment Year 2018-19. 2. Brief facts of the case are that, an assessment order came to be passed on 08/03/2023 passed u/s 147 r.w. Section 144B of Income Tax Act, 1961 ('Act' for short), by computing the income of the Assessee at Rs. 69,77,220/-, as against the returned income of Rs. 11,70,620/- by making disallowance of Rs. 58,06,600/- on account of bogus purchases. Aggrieved by the assessment order dated Printed from counselvise.com 2 ITA No.1529/Del/2025 Ajay Kumar Gupta Vs. ITO 08/03/2023, the Assessee preferred the Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 10/01/2025, dismissed the Appeal filed by the Assessee. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal. 3. The Ld. Counsel for the Assessee vehemently submitted that the Ld. CIT(A) has provided no opportunity of being heard to the Assessee and in violation of principals of natural justice, dismissed the appeal of the Assessee. 4. Per contra, the Ld. Ld. Departmental Representative relying on the orders of the Ld. CIT(A) sought for dismissal of the Appeal. 5. We have heard both the parties and perused the material available on record. It can be seen from the order of the Ld. CIT(A) , the impugned order has been passed ex-parte without hearing the Assessee. It is further observed that while deciding the Appeal, the Ld. CIT(A) has not decided all the grounds of Appeal of the Assessee on its merits. Considering the facts that the Assessee has not participated in the first Appellate proceedings, in the interest of natural justice, we remand the matter to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to decide the Appeal afresh on its merits in accordance with law after providing opportunity of being heard to the Assessee. Printed from counselvise.com 3 ITA No.1529/Del/2025 Ajay Kumar Gupta Vs. ITO 6. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 12th September, 2025 Sd/- Sd/- (S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 12.09.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "