ALOK BUILDTECH PRIVATE LIMITED,DURG V. ACIT, CENTRAL CIRCLE-1, RAIPUR

ITA 193/RPR/2025

AI Insights

The case involves Alok Buildtech Private Limited, a company engaged in civil construction, which appealed against the order of the Commissioner of Income Tax (Appeals), Raipur. The appeal was initially dismissed ex-parte by the CIT(A) due to the assessee's non-compliance in providing evidence during the appellate proceedings. The assessee argued that this non-compliance was due to not receiving proper notice of the proceedings, as they had opted for non-email communication. The Income Tax Appellate Tribunal (ITAT) found merit in the assessee's argument and restored the matter to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669147 (ITAT-RAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: NILESH JAIN; JAY JUNEJA; WAY OF ANY OTHER MODE OTHER THAN BY WAY OF EMAIL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Assessment record
• Section: 143(3); 142(1)

Judgement Text

"आयकरअपीलीयअिधकरण, रायपुर Ɋायपीठ,रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR Įी पाथ[ सारथी चौधरȣ, Ɋाियक सद˟ एवं ŵीअŜण खोड़िपया, लेखा सद˟ क े समƗ । BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं. / ITA No: 193/RPR/2025 (िनधाŊरण वषŊ Assessment Year: 2019-20) Alok Buildtech Private Limited, Qtr No. 10, Kadambari Nagar, Durg-491001 (C.G.) v s Asst. Commissioner of Income Tax, Central Circle-1, CBD Building, Sector-21, Naya Raipur-492001 (C.G.) PAN: AAOCA5812F (अपीलाथŎ/Appellant) . . (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से / Assessee by : Shri Nilesh Jain, CA & Shri Jay Juneja, CA राजˢ की ओर से / Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई की तारीख / Date of Hearing : 25.06.2025 घोषणा की तारीख / Date of Pronouncement : 27.06.2025 आदेश / O R D E R Per Arun Khodpia, AM: The captioned appeal instituted by the assessee is directed against the order of the Commissioner of Income Tax (Appeal), Raipur-3, [in short “Ld. CIT(A)”], passed on 18.02.2025, u/s 250 of the Income Tax Act, 1961 (in short “the Act”), for the Assessment Year 2019-20, which in turn arises from the order of Assistant Commissioner of Income Tax, Central Circle-1, Raipur (in short “Ld. AR”), u/s 143(3) of the Act, dated 30.09.2021. 2 ITA No. 193/RPR/2025 Alok Buildtech Private Limited vs. ACIT, Central Circle-1, Raipur 2. The grounds of appeal raised by the assessee are as under: 1) In the facts and circumstances of the case and in law the ld. Commissioner of Income-tax (Appeals) (NFAC) has erred in deciding the appeal ex-parte without proper service of the notice as per provisions of the Act despite Appellant opting out for service of notice u/ s.250 of the Income-tax Act, 1961 through email by stating \"No\" in relevant column of Form 35 and without following the principles of natural justice. 2) In the facts and circumstances of the case and in law, learned Commissioner of Income Tax (Appeals), NFAC has erred in upholding order of learned Assessing Officer making addition of Rs.75,33,583/- as unrecorded investment without considering assessment records, without observing the principles of natural justice and without allowing reasonable opportunity to the appellant to explain his case. 3) The impugned order is bad in law and on facts. 4) The appellant reserves the right to addition, after or omit all or any of the grounds of appeal in the interest of justice. 3. Concisely stated, the assessee is a private limited company, derives income from civil construction work and engaged in construction of buildings, road projects and bridges, have filed Return of Income for AY 2019-20 on 31.10.2019, declaring total income of Rs. 5,49,25,240/-. The case of assessee was selected for scrutiny on the basis of survey conducted on 20.02.2019. Statutory notices, u/s 143(2) dated 22.09.2019 was issued. Subsequently, notice u/s 142(1) of the Act along with questionnaire was issued and served upon the assessee. In response to the said notices, the assessee furnished requisite submission and supporting documents through ITBA portal. After deliberations upon the submission of the assessee, Ld. AO observed that the total additional income agreed to be surrendered by 3 ITA No. 193/RPR/2025 Alok Buildtech Private Limited vs. ACIT, Central Circle-1, Raipur the assessee during the survey was Rs.2,23,46,148/-. However, the assessee had included only Rs.1,48,12,565/- under the head ‘other income’ while declaring the same, therefore, there was a difference of Rs.75,33,583/- which is added back to the income of the assessee. 4. Aggrieved with the aforesaid addition, the assessee preferred an appeal before the First Appellate Authority, however, the appeal of the assessee has been dismissed by the Ld. CIT(A) on ex-parte basis. The observations of Ld. CIT(A) highlighting non-compliance by the assessee during the appellate proceedings, are extracted as under: Being aggrieved with the assessment order, the appellant has preferred appeal which is under consideration. During the course of appeal proceedings, several notices u/s 250 were issued but the assessee firm never filed any evidence in support of issues raised in appeal. Last notice u/s 250 was issued on 09.07.2024 and hearing was fixed on 15.07.2024 but the assessee company did not submit any further reply in support of appeal. Therefore, it is held that the assessee company has no interest in this appeal. Three notices are issued but the assessee company did not file any submission in support of the grounds raised in the appeal. The details of 03 notices issued to the assessee company as reproduced here in below: 4 ITA No. 193/RPR/2025 Alok Buildtech Private Limited vs. ACIT, Central Circle-1, Raipur Sr. No. Notice issued under Section Date of notice Hearing Date Remarks 1. 250 of I. T. Act, 1961 11.11.2022 21.11.2022 No reply 2. 250 of I. T. Act, 1961 22.09.2023 12.10.2023 No reply 3. 250 of I. T. Act, 1961 09.07.2024 15.07.2024 No reply The assessee company has failed to submit any evidence in support of its appeal despite given several opportunities being heard. Under these circumstances, in my opinion the appellant is not interest in the appeal. 5. Being the appeal of assessee has been dismissed by the First Appellate Authority, the assessee preferred an appeal before this tribunal, which is under consideration for the present matter. 6. At the outset, Ld. AR of the assessee submitted that the reason for non-compliance before the Ld. CIT(A) was that the assessee had preferred delivery and notices and communication other than by way of email, therefore, the Form 35 furnished before the First Appellate Authority, assessee opted ‘No’ towards the column ‘whether notices / communication may be sent on email?’. Accordingly, the assessee was unaware about the notices issued, therefore, no compliance could be made before the First Appellate Authority. It was the submission that assessee’s non-representation before the First Appellate Authority was on account of Bonafide reasons beyond the control of assessee and, there was no intentional avoidance at the end of assessee, thus, the dismissal of assessee’s appeal was representing the contravention of principle of natural justice. It was therefore the prayer by Ld. AR that the matter may 5 ITA No. 193/RPR/2025 Alok Buildtech Private Limited vs. ACIT, Central Circle-1, Raipur kindly be restored back to the file of Ld. CIT(A), with a last and final opportunity to the assessee to represent its case and make necessary submissions. 7. Per contra, Ld. Sr. DR, vehemently supported the order of revenue authorities, however, had not objected to the request of assessee to restore the matter back to the file of Ld. CIT(A). 8. Considering the aforesaid facts and circumstances, after hearing both the parties, we find that the assesse before the First Appellate Authority was under impression to receive the notices through physical mode, as it had opted ‘No’ towards the communications through email, further, the revenue before us is unable to produce any proof that the notices or communication are served to the assessee by way of any other mode other than by way of email. Considering such factual aspect, we find substance in the submission by the Ld. AR, accordingly, as concede by both the parties, it would be fair in the interest of justice to restore this matter back to the file of Ld. CIT(A) for allowing one more opportunity to the assessee to represent its matter and to decide the appeal afresh. 9. Needless to say, the assessee shall be afforded with reasonable opportunity of being heard in the set aside appellate proceedings. The assessee as agreed is directed to cooperate and to assist proactively in the 6 ITA No. 193/RPR/2025 Alok Buildtech Private Limited vs. ACIT, Central Circle-1, Raipur set aside proceedings, failing which the Ld. CIT (A) would be at liberty to decide the case in accordance with the mandate of law. 10. In result, appeal of the assessee is allowed for statistical purposes, in terms of over aforesaid observations. Order pronounced in the open court on 27/06/2025. Sd/- (PARTHA SARATHI CHAUDHURY) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर/Raipur; िदनांक Dated 27/06/2025 Vaibhav Shrivastav आदेशकी Ůितिलिप अŤेिषत / Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीलीय अिधकरण, रायपुर/ITAT, Raipur 1. अपीलाथŎ/ The Appellant- Alok Buildtech Private Limited 2. ŮȑथŎ/ The Respondent- ACIT, Central Circle-1, Raipur 3. The Pr. CIT, Raipur (C.G.) 4. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 5. गाडŊ फाईल / Guard file. // सȑािपत Ůित True copy // "