BASANTI AUTO AGENCY,BALASORE V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), CUTTACK, CUTTACK

ITA 66/CTK/2025

AI Insights

This case involves an appeal by Basanti Auto Agency against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-2016. The assessee, an authorized dealer of Mahindra and Mahindra Ltd., was engaged in selling vehicles and services. The AO had made significant additions to the assessee's income, which were contested in the appeal. The primary contention was the violation of the principles of natural justice, as the assessee claimed insufficient opportunity to present evidence and substantiate its claims during the appellate proceedings. The Tribunal found merit in the assessee's request for another opportunity to present its case and thus restored the matter to the AO for further examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472116 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: P.K.MISHRA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, कटक कटक कटक कटक \u0001यायपीठ \u0001यायपीठ \u0001यायपीठ \u0001यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER आयकर अपील सं सं सं सं/ITA No.66/CTK/2025 (िनधा\u0005रण िनधा\u0005रण िनधा\u0005रण िनधा\u0005रण वष\u0005 वष\u0005 वष\u0005 वष\u0005 / Assessment Year : 2015-2016) Basanti Auto Agency, At: Remuna Goali, PO: Januganj, Dist: Balasore Vs DCIT, Circle-1(1), Cuttack PAN No. :AAJFB 5329 A (अपीलाथ\u000f अपीलाथ\u000f अपीलाथ\u000f अपीलाथ\u000f /Appellant) .. (\u0010\u0011यथ\u000f \u0010\u0011यथ\u000f \u0010\u0011यथ\u000f \u0010\u0011यथ\u000f / Respondent) िनधा\u0005\u0013रती िनधा\u0005\u0013रती िनधा\u0005\u0013रती िनधा\u0005\u0013रती क\u0016 क\u0016 क\u0016 क\u0016 ओर ओर ओर ओर से से से से /Assessee by : Shri P.K.Mishra , Advocate राज\u0018व राज\u0018व राज\u0018व राज\u0018व क\u0016 क\u0016 क\u0016 क\u0016 ओर ओर ओर ओर से से से से /Revenue by : Shri S.C.Mohanty, Sr. DR सुनवाई क\u0002 तारीख / Date of Hearing : 28/01/2025 घोषणा क\u0002 तारीख/Date of Pronouncement : 28/01/2025 आदेश आदेश आदेश आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 15/01/2025, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No.ITBA/NFAC/S/250/2024- 25/1072185492(1) for the assessment year 2015-2016. 2. It was the submission by the ld. AR that the assesee firm is an authorized dealer of Mahindra and Mahindra Ltd., for Balasore, Bhadrak and Mayurbhanj Districts in the State of Odisha. It has been engaged in the business of selling light commercial vehicles, utility vehicles of Mahindra & Mahindra along with spares and services. It was submitted that the books of accounts of the assesee were audited u/s.44AB and the assesee had filed its return of income u/s.139(4) of the Act declaring total income at Rs.60,11,667.00 which was processed u/s.143(1) of the Act by accepting the return of income declared by the assesee. It was the submission that the AO framed the assessment making addition of ITA No.66/CTK/2025 2 Rs.19,83,94,975/- on account of the cash received but not reported as income in the profit and loss account and estimated the total expenses @20% to Rs.20,93,48,504/- as the assesee failed to prove the genuineness of the said expenses. It was the submission that in appeal the ld. CIT(A) dismissed the appeal of the assessee without providing sufficient effective opportunity of being heard to the assessee to produce the evidences and to substantiate his claim, which amounts to gross violation of principle of natural justice. It was prayed by the ld. AR that the issues may be restored to the file of ld. AO so that the assessee could comply all the direction. 3. In reply, ld. Sr. DR vehemently supported the order of the ld. CIT(A) and the ld. AO. It was the submission that restoring the matter to the file of AO would be, in fact, giving the assessee a second round which should not be granted. 4. We have considered the rival submissions. A perusal of the assessment order as well as the appellate order, both the authorities have asked for certain details, however, the assessee could not furnish the documents to substantiate its claim before either of the authorities. A perusal of impugned order at page 3 & 4, it is seen that the CIT(A) has provided the sufficient opportunities to the assesee, however, the assesee could not make any compliance to the notices issued. Before us, the ld. AR requested that one more opportunity may be provided so that the assesee would be able to substantiate its case before the AO. This being so, in the interest of justice, the issues in this appeal are restored to the ITA No.66/CTK/2025 3 file of the ld. AO for readjudication after granting the assessee adequate opportunities to substantiate its claim. The assessee is directed to cooperate in the readjudication proceedings before the AO without any fail. We order accordingly. 5. In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 28/01/2025. Sd/- (MANISH AGARWAL) Sd/- (GEORGE MATHAN) लेखा सद\u0003य/ ACCOUNTANT MEMBER \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / JUDICIAL MEMBER कटक कटक कटक कटक Cuttack; \u0003दनांक Dated 28/01/2025 Prakash Kumar Mishra, Sr.P.S. आदेश आदेश आदेश आदेश क\u0002 क\u0002 क\u0002 क\u0002 \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप अ\tेिषत अ\tेिषत अ\tेिषत अ\tेिषत/Copy of the Order forwarded to : आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, कटक कटक कटक कटक/ITAT, Cuttack 1. अपीलाथ\u0007 / The Appellant- Basanti Auto Agency, At: Remuna Goali, PO: Januganj, Dist: Balasore 2. \b\tयथ\u0007 / The Respondent- DCIT, Circle-1(1), Cuttack 3. आयकर आयु\u0006(अपील) / The CIT(A), 4. आयकर आयु\r / CIT 5. िवभागीय \u0010ितिनिध, आयकर अपीलीय अिधकरण, कटक कटक कटक कटक / DR, ITAT, Cuttack 6. गाड\u0010 फाईल / Guard file. स\tयािपत \bित //True Copy// "