CHANDRA,SHAHGANJ V. WARD1(1)(1), AAYAKAR BHAWAN, AGRA

ITA 256/AGR/2025

AI Insights

The case involves an appeal by the assessee, Chandra, against the order of the Commissioner of Income-tax (Appeals), which confirmed the addition of Rs.58,56,000 as unexplained bank deposits treated as income from undisclosed sources for the assessment year 2015-16. The primary contention was the violation of the principles of natural justice, as the assessee argued that the CIT(Appeals) had not afforded a reasonable opportunity of hearing. The Income Tax Appellate Tribunal found that the CIT(Appeals) had not adequately discussed the merits of the case in the impugned order and thus remitted the matter back for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713194 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: DEEPENDRA MOHAN
• Keywords: Set aside; Principle of natural justice
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 256/Agr/2025 Assessment Year: 2015-16 Chandra, 44/322, Bidha Nagar, Bodla Road, Shahganj, Agra. Vs. Income-tax Officer, Ward 1(1)(1),Sanjay place, Agra. PAN : AFGPC9873G (Appellant) (Respondent) ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER: This appeal has been preferred by assessee against the impugned order dated 11.03.2025 passed in Appeal No. NFAC/2014-15/10251316 by Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2015-16, wherein learned CIT(Appeals) has dismissed assessee’s first appeal exparte, confirming the addition of Rs.58,56,000/- made by the Assessing Officer as unexplained bank deposits, treating it as income of the assessee from undisclosed/unexplained sources, vide assessment order dated 31.03.2023 passed u/s. 147 r.w.s. 144 of the Act. Assessee by Sh. Deependra Mohan, CA Department by Sh. Anil Kumar, Sr. DR Date of hearing 15.07.2025 Date of pronouncement 30.07.2025 Printed from counselvise.com ITA No.256/Agr/2025 2 | P a g e 2. This appeal has been preferred on the ground, in addition to other grounds, that the ld. CIT(Appeals) has erred in confirming the assessment order in violation of the principles of natural justice. 3. Perused the records and heard learned representative for the assessee and ld. departmental representative for the revenue. 4. Learned AR has submitted that the impugned order of ld. CIT(Appeals) is not sustainable, having been passed without affording reasonable opportunity of hearing to the assessee. 5. Ld. DR, on the other hand, has submitted that sufficient opportunities were afforded to the appellant by ld. CIT(Appeals). He supported the impugned order. 6. Perusal of the impugned order shows that during the appellate proceedings, learned CIT(Appeals) issued three notices to the assessee on 27.01.2025, 11.02.2025 and 20.02.2025, in response to which, the assessee requested for adjournments only. Learned CIT(Appeals) granted adjournments on two occasions, but rejected assessee’s third adjournment request. Further an adjournment request dated 28.02.2025 was also not acceded to. It is, however, noticed that learned CIT(Appeals) passed ex- parte impugned order without any discussion on the merits of the case, whereas learned CIT(Appeals) was expected to state the points for determination, decision thereon and the reasons for the decision as Printed from counselvise.com ITA No.256/Agr/2025 3 | P a g e provided u/s. 250(6) of the Act. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication on merits. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly. 7. In the result, the appeal is allowed for statistical purposes. The impugned order dt. 11.03.2025 is set aside. Order pronounced in the open court on 30.07.2025. Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.07.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "