BANARASI FLOUR MILL,DELHI V. ITO,WARD-34(7), NEW DELHI

ITA 4921/DEL/2024

AI Insights

The case involves Banarasi Flour Mill, a partnership firm, which appealed against the order of the CIT(A), NFAC, Delhi, dated 10.09.2024, for the assessment year 2017-18. The firm had initially filed a return declaring a total income of Rs. 1,23,880, which was significantly increased by the AO to Rs. 91,91,840 due to unaccounted cash deposits, unsecured loans, and sundry creditors. The CIT(A) upheld the AO's decision due to non-compliance by the assessee in providing necessary documents and explanations. The Tribunal noted the repeated non-appearance and non-compliance by the assessee but decided to remand the case back to the CIT(A) for a fresh assessment, providing another opportunity for the assessee to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474653 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Keywords: Set aside
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.4921/Del/2024 (ASSESSMENT YEAR 2017-18) Banarasi Flour Mill Plot No.3, Khasra No.243, Ground Floor, Nithari Gao, Near Nithari Village, New Delhi-110041. PAN-AAQFB5015J Vs. Income Tax Officer, Ward-34(7), New Delhi. (Appellant) (Respondent) Assessee by None Department by Shri Ashish Tripathi, Sr. DR Date of Hearing 18/02/2025 Date of Pronouncement 18/02/2025 O R D E R PER MANISH AGARWAL, AM: This is an appeal filed by the assessee against the order of ld. CIT(A), NFAC, Delhi dated 10.09.2024 in appeal No. NFAC/2016- 17/10019943 for AY 2017-18. 2. In ground of appeal No.1 & 2, assessee has challenged the action of the ld. CIT(A) in dismissing the appeal of the assessee ex parte for non-prosecution without appreciating the material available on record. 2 ITA No.4921/Del/2024 Banarasi Flour Mill vs. ITO 3. Brief facts of the case are that the assessee is a partnership firm and had filed its return of income on 30.10.2017 declaring total income at Rs. 1,23,880/-. The case was selected for scrutiny under CASS and asked the assessee to file certain detailed. As the assessee has failed to file any explanation and details, the AO has passed the order on the basis of the material available on records at a total income of Rs. 91,91,840/- by making additions of towards cash deposited into bank of Rs. 63,40,000/-, unsecured loan Rs.13,00,000/- and sundry creditors Rs. 14,27,959/- in terms of the order passed u/s 143(3) dt. 28.12.2019. On appeal ld. CIT(A) confirmed the addition as there was no compliance before him. Hence, the assessee is in appeal before us. 4. None appeared on behalf of the assessee and Shri Ashish Tripathi, Sr. DR appeared on behalf of revenue. 5. We have considered the submissions of ld. Sr. DR. A perusal of the impugned order clearly shows that despite giving several opportunities of hearing, the assessee failed to make any submissions or file documentary evidence in reply to the queries raised by AO. Therefore, the AO has passed the assessment order based on the material available on record. In appellate proceedings it seen that though the assessee sought adjournments on two occasions but has not filed any details. Considering the fact that the assessee has failed to make any representation before the AO and also before the ld. CIT(A), in the interest of justice, we set aside the 3 ITA No.4921/Del/2024 Banarasi Flour Mill vs. ITO order of the ld. CIT(A) and restore the matter back again to his file for fresh adjudication after affording reasonable opportunity of hearing. If the assessee fails to represent his case or furnish any documentary evidences, the CIT(A) is free to decide the issues on merits. 6. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 18/2/2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated:18/02/2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "