DAWAR INFRABUILD PVT LTD,AGRA V. DY COMM OF INCOME TAX, AGRA

ITA 400/AGR/2025

AI Insights

The case involves Dawar Infrabuild Private Limited, which appealed against the order of the CIT (Appeals) that dismissed their first appeal ex parte regarding the assessment year 2015-16. The primary contention was the addition of rental income amounting to Rs.5,73,74,325/- under section 56 of the Income-tax Act, 1961, which the Assessing Officer included in the assessee's income. The CIT (Appeals) initially dismissed the appeal due to the non-responsive conduct of the assessee, who failed to adequately respond to multiple notices. The Tribunal found that the CIT (Appeals) did not comply with the procedural requirements of section 250(6) of the Act, which mandates a detailed, reasoned decision on the points of determination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789924 (ITAT-AGRA)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 06-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; REVENUE; SHAILENDRA SRIVASTAVA
• Assessee Lawyers: ALOK FARSAIYA
• Keywords: Set aside; Principle of natural justice
• Section: 142(1); 56

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 400/Agr/2025 Assessment Year: 2015-16 Dawar Infrabuild Private Limited, Off. No. 1, 3rd Floor, Block 38/4-A, Sanjay Place, Agra-282002 (UP). Vs. DCIT, Circle 2(1)(1), Agra. PAN : AADCD2289E (Appellant) (Respondent) Assessee by Sh. Alok Farsaiya, CA Department by Sh. Shailendra Srivastava, Sr. DR Date of hearing 15.10.2025 Date of pronouncement 26.11.2025 ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER: This appeal has been preferred by assessee against the impugned order dated 12.06.2025 passed in Appeal No. CIT (Appeal) 2, Agra/10767/2017-18 by the 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 the ld. CIT(Appeals) has dismissed assessee’s first appeal ex parte. 2. Brief facts state that the assessee e-filed its return of income on 29.09.2015, declaring total income of Rs.3,62,66,490/-. Return was Printed from counselvise.com ITA No.400/Agr/2025 2 | P a g e processed u/s. 143(1) of the Act. Case was selected for limited scrutiny under CASS. Statutory notices u/s. 143(2) and 142(1) of the Act were issued and served upon the assessee. Assessee submitted his response through Chartered Accountant. After considering the assessee’s response and submissions, learned Assessing Officer added total rental income of Rs.5,73,74,325/- received by assessee u/s. 56 of the Act in the income of the assessee. 3. Aggrieved, assessee filed an appeal before learned CIT(Appeals), who dismissed assessee’s appeal in default of assessee. 4. Assessee preferred this second appeal on the ground, in addition to others on merits, that the ld. CIT(Appeals) has erred in dismissing the appeal ex parte. 5. Perused the records and heard learned representative for assessee and learned Sr. DR for revenue. 6. At the very outset, we notice that ld. CIT(Appeals) issued notices dated 17.12.2019, 24.12.2020, 17.12.2020, 06.07.2023, 26.02.2025 and 28.05.2025, which remained un-responded except on one occasion when the assessee sought adjournment. Such an irresponsive conduct of the assessee cannot be appreciated. However, we note that learned CIT(Appeals) has tried to pass the impugned order on merits, but not in true spirit of section 250(6) of the Act, whereas the ld. CIT(Appeals) was Printed from counselvise.com ITA No.400/Agr/2025 3 | P a g e expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. We, therefore, deem it just and appropriate to remit the matter back to the file of learned CIT(A) for adjudication afresh on merits after affording opportunity of hearing to the assessee. The ld. CIT(Appeals) is directed to pass speaking and reasoned order. We direct the assessee to be cooperative in attending the hearings and making submissions before the learned CIT(A) for the expeditious and effective disposal. Needless to say, that learned CIT(A) shall ensure the observance of the principles of natural justice. The appeal is, thus, liable to be allowed for statistical purposes. 7. In the result, assessee’s appeal is allowed for statistical purposes. The impugned order dated 12.06.2025 is set aside. Order pronounced in the open court on 26.11.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26.11.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "