BIPIN KANTILAL VAKTA,AHMEDABAD V. THE ITO WARD-1(2)(1), AHMEDABAD

ITA 1955/AHD/2025

AI Insights

This case involves an appeal by Bipinbhai Kantilal Vakta against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which upheld the addition of Rs. 44,12,219 as estimated profit at 10% of alleged bogus sales to M/S Vama Exports Ltd. The assessee contested the legality and the principles of natural justice applied in the ex-parte decision by the CIT(A), which was based on the non-compliance with notices requiring details and clarifications regarding the sales in question. The Tribunal found merit in the assessee's request for a de novo hearing, considering the potential for compliance and the submission of necessary documents.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829476 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 16-10-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER ITA No. 1955/Ahd/2025 (Assessment Year: 2016-17) Bipinbhai Kantilal Vakta, 195, Doshiwadani Pole, Kalupur, Ahmedabad-380001 [PAN : AAGPV 4044 F] Vs. Income-Tax Officer, Ward-1(2)(1), Ahmedabad (Appellant) .. (Respondent) Appellant represented by : Shri Samir Vora, AR Respondent represented by: Shri Abhijit, Sr. DR Date of Hearing 12.01.2026 Date of Pronouncement 13.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order dated 17.09.2025 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) for Assessment Year 2016-17. 2. The assessee has raised following grounds of appeal :- “1.1 The order passed by U/s.250 passed on 17.09.2025 for A.Υ. 2016-17 by NEAC, [CIT(A)], Delhi [for short CIT(A)\"] upholding the addition of Rs.44,12,219/- made by A.O. as estimated profit @10% of the alleged bogus sales to M/S Vama Exports Ltd. is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(A), has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued mainly on account of failure of the staff of tax consultant and the appellant. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by NFAC. 2.2 The ld. CIT(A), has grievously erred in law and or on facts in disposing the appeal ex-parte instead of adjudicating on merits of the case which has resulted into violation of principles of natural justice. 3.1 The Id. CIT(A) has grievously erred in law and or on facts in upholding that the sales made to Vama Exports Ltd. were bogus or non-genuine and thereby conforming the addition of Rs.44,12,219/- made by A.O. as estimated profit @ 10% of the alleged bogus sales to M/S Vama Exports Ltd. 3.2 That the in the facts and circumstances of the Id. CIT(A), ought not to have upheld that sales made to Vama Exports Ltd. were bogus or non-genuine and Printed from counselvise.com ITA No. 1955/Ahd/2025 Bipinbhai Kantilal Vakta Vs. ITO Asst. Year : 2016-17 - 2– thereby confirming the addition of Rs.44,12,219/- made by A.O. as estimated profit @ 10% of the alleged bogus sales to M/S Vama Exports Ltd.” 3. At the very outset, on perusal of the record, it is evident that notices under section 250 were issued on 17.06.2025, 15.07.2025, and 28.08.2025, calling upon the assessee to furnish requisite details, clarifications, and explanations in support of his claims. Despite the issuance of multiple notices by the Ld. CIT(A), the assessee failed to comply. Consequently, the Ld. CIT(A) confirmed the action of the Assessing Officer and dismissed the assessee’s appeal by passing an ex parte order. 4. At the time of hearing, the Ld. AR submitted that, if granted an opportunity, the assessee would make due compliance and furnish all requisite details, clarifications, and explanations before the revenue authorities. Considering the submission and in the interest of justice, the matter is remanded to the Ld. CIT(A) for de novo adjudication. The assessee is directed to submit all relevant details, submissions, and documents before the Ld. CIT(A) and to comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 5. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 13.01.2026. Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 13.01.2026 **btk आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "