EVERGREEN BAMBOO INDIA PRIVATE LIMITED,DELHI V. ITO WARD 8(1), DELHI

ITA 4032/DEL/2024

AI Insights

The case involves Evergreen Bamboo India Private Limited appealing against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal, Delhi, which sustained an addition of Rs. 20,16,782/- to the Assessee's income for the Assessment Year 2016-17. The addition was initially made by the Income Tax Officer under section 68 of the Income Tax Act, 1961, concerning unexplained cash credits. The Assessee contested the addition, arguing that the CIT(A) did not provide adequate reasons or an opportunity to rebut the presumption for this partial addition. The Department supported the CIT(A)'s decision, highlighting the relief granted by deleting a larger addition. The Tribunal found merit in the Assessee's argument regarding the lack of adequate reasoning and opportunity for the contested addition, leading to the decision to remand the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782438 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 31-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: MANISH KHURANA
• Keywords: Principle of natural justice
• Section: 147; 144; 68

Judgement Text

" 1 ITA No. 4032/Del/2024 Evergreen Bamboo India Limited Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCHES ‘B’ ‘NEW DELHI’ BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER I.T.A. No. 4032/DEL/2024 (A.Y 2016-17) Evergreen Bamboo India Private Limited, 1 and 2, Ground Floor No. 10672 (4/47), Plot No. 47, Block 4, Khasra No. 5068/2 619, Karol Bagh, New Delhi PAN: AACCE3617J Vs ITO Ward 8(1) Assessment Unit, Income Tax Department, New Delhi Appellant Respondent Assessee by Sh. Manish Khurana, Adv Revenue by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 29/10/2025 Date of Pronouncement 31/10/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal, Delhi (‘Ld. CIT(A)/’NFAC’ for short), dated 04/07/2024 for the Assessment Year 2016-17. 2. There is a delay of 09 days in filing the present Appeal. The Assessee filed an application for condoning the delay. For the reason sated in the application of condonation of delay, the delay of 09 days in filing the present appeal is hereby condoned. 3. Brief facts of the case are that, an assessment order came to be passed on 15/05/2023 u/s 147 r.w. Section 144 B of the Income Tax Act, 1961 ('Act' for short) by making an addition of Rs. 1,61,34,250/- Printed from counselvise.com 2 ITA No. 4032/Del/2024 Evergreen Bamboo India Limited Vs. ITO u/s 68 of the Act. Aggrieved by the assessment order dated 15/05/2023, the Assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 04/07/2024, sustained the addition made on account of profit element at 12.5% of the alleged sales amounting to Rs. 20,16,782/- and deleted the remaining addition of Rs. 141,17,468/-. As against sustaining the addition of Rs. 20,16,782/-, Assessee preferred the present Appeal. 4. The Ld. Counsel for the Assessee vehemently submitted that the Ld. CIT(A) has not given cogent reason to sustain the addition of Rs. 20,16,782/- and the partial addition has been sustained without providing adequate opportunity to the Assessee to rebut the presumption and the action of the Ld. CIT(A) is in violation of principals of natural justice, thus sought for allowing the Appeal. 5. Per contra, the Ld. Departmental Representative submitted that the Ld. CIT(A) was gracious enough to grant sufficient relief to the Assessee, however only sustained the addition on account of profit element at 12.5% on the alleged sales amounting to Rs. 20,16,782/- which requires no interference at the hands of the Tribunal. Thus, sought for dismissal of the Appeal. 6. We have heard both the parties and perused the material available on record. The only grievance of the Assessee is sustaining the addition of Rs. 20,16,782/-. It is the specific case of the Ld. Printed from counselvise.com 3 ITA No. 4032/Del/2024 Evergreen Bamboo India Limited Vs. ITO Assessee's Representative that no adequate opportunity has been given to the Assessee before sustaining partial addition by the Ld. CIT(A). Though the Ld. CIT(A) has deleted the addition of Rs. 1,41,17,468/-, not assigned any reason for sustaining the addition of Rs. 20,16,782/-. Therefore, in our considered opinion, the matter requires to be examined by the Ld. CIT(A), accordingly the Ld. CIT(A) is directed to decide the sustained addition of Rs. 20,16,782/- afresh and pass the appropriate proper in accordance with law. Needless to say, as the Department has not challenged deletion of the addition of Rs. 1,41,17,468/- made by the Ld. CIT(A), the same has not been disturbed by us. 7. In the result, Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 31st October, 2025 Sd/- Sd/- (AMITABH SHUKLA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 31 .10.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com 4 ITA No. 4032/Del/2024 Evergreen Bamboo India Limited Vs. ITO Printed from counselvise.com "