ARVIND KUMAR,HISAR V. INCOME TAX OFFICE, HISAR

ITA 315/DEL/2025

AI Insights

The case involves Arvind Kumar, the proprietor of M/s Jai Ambe Trading Co., who appealed against the order of the National Faceless Appeal Centre (NFAC)/Ld. CIT(A), which had dismissed his appeal ex-parte. The original assessment by the Assessing Officer under sections 143(3) r.w.s. 144B of the Income Tax Act, 1961, for the Assessment Year 2018-19, had added a substantial amount to the assessee's income due to alleged bogus purchases. The CIT(A) dismissed the appeal due to non-appearance of the assessee despite multiple notices. The tribunal found that the assessee had not been given a fair opportunity to present his case and thus restored the matter to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669509 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Keywords: Corroborative evidences; Bogus purchase; Bogus
• Section: 143(3); 69C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘C’: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.315/DEL/2025 [Assessment Year: 2018-19] Arvind Kumar, M/s Jai Ambe Trading Co. Near Idea Tower, Hisar-125001 Vs National e-assessment Centre, Delhi, ITO, Hissar, PAN-COAPK3514F Assessee Revenue Assessee by None Revenue by Shri Om Prakash Sr. DR Date of Hearing 23.06.2025 Date of Pronouncement 23.06.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal by the assessee is directed against the order of National Faceless Appeal Centre (in short ‘NFAC’)/Ld. CIT(A), Delhi dated 13.08.2024, arising out of assessment order 23.04.2021 passed u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter ‘the Act’) pertaining to Assessment Year 2018-19. 2. None appeared on behalf of the assessee. However, the appeal is being decided after hearing the ld. Sr. DR and on the basis of material available on record. 3. Brief facts of the case:- The assessee, an individual, filed his original return of income on 31.10.2018 declaring income of 2 ITA No.315/Del/2025 Rs.4,89,830/-, for the assessment year 2018-19. The return of income was processed u/s 143(1) of the Act and the case was selected for scrutiny and notice u/s 143(2) dated 22.09.2019 was issued to assessee for the verification of business purchases. In this case, there was very partial compliance by the assessee during the course of assessment proceedings. The Assessing Officer for the reasons stated in the assessment order and as per the show-cause notice dated 13.04.2021 observed that purchases in this case of the assessee were doubtful in absence of any supporting evidence which were called from the assessee viz identity of persons from whom purchase made, purchase ledger, GSTR for the period under consideration etc. Due to non-submissions of the above evidence or any justification, the Assessing Officer show-caused the assessee as to why 5% of the total purchases value of traded goods(grains in the case of the assessee) be not considered as bogus purchases amounting to Rs.2,09,76,340/- and be disallowed and added to total income of the assessee u/s 69C of the Act. According to the Assessing Officer, the assessee failed to submit any reply and the Assessing Officer made the addition of Rs.2,09,76,340/- and added it to the total income of the assessee. 4. Aggrieved with the assessment order, the assessee preferred an appeal before the ld. CIT(A). The Ld. CIT(A) dismissed the appeal of the assessee ex-parte. According to the Ld. CIT(A), the assessee failed to appear in response to five notices u/s 250 of the Act for hearing as 3 ITA No.315/Del/2025 per details mentioned in para no.4 of his order. The ld. CIT(A) in para no.7 also discussed about the merits of the case and dismissed the appeal of the assessee on the ground that the assessee had failed to avail the opportunity provided and in absence of any substantiation or any documentary evidence filed in support of grounds of appeal, it could only be concluded that the assessee had no evidence or explanation to offer in respect of the additions made in the assessment order. 5. Against the above order of the ld. CIT(A), the assessee is in appeal before us. 6. We have heard the ld. DR and perused the material available on record. It is seen from the record that the assessee did not appear before the Ld. CIT(A) and also did not make any effective representation before the Assessing Officer as it did not submit the reply to the show-cause notice dated 13.04.2021. It is further seen that the Assessing Officer completed the assessment on 23.04.2021 without allowing any further opportunity to the assessee. Therefore, in the given facts of the case and in the interest of justice, we deem it appropriate to restore this appeal back to the Ld. CIT(A) for de novo adjudication after affording reasonable opportunity of hearing to the assessee in accordance with law. 4 ITA No.315/Del/2025 7. The assessee is directed to comply with the notice(s) issued by the ld. CIT(A) without fail. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 23rd June, 2025 Sd/- S Sd/- d/- [VIKAS AWASTHY] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 23.06.2025. Shekhar Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "