GANPATI ENTERPRISES,AGRA V. ITO WARD 1(1)(1), AGRA

ITA 110/AGR/2025

AI Insights

The case involves Ganpati Enterprises, a partnership firm, which appealed against the order of the Commissioner of Income-tax (Appeals), NFAC, Delhi. The appeal was against the assessment of total income of Rs.3,40,61,893/- for the Assessment Year 2017-18, which was significantly higher than the returned income of Rs.2,94,060/-. The Assessing Officer had made this assessment under section 144 of the Income-tax Act, 1961, following a scrutiny of the firm's income tax return. The CIT(Appeals) upheld this assessment, leading to the current appeal. The tribunal noted that the principles of natural justice were not adequately observed as the order seemed to have been passed ex parte due to the assessee's non-compliance in submitting required documents or responses after the appeal's migration to NFAC, Delhi. Consequently, the tribunal decided to remit the matter back to the CIT(Appeals) for a fresh decision, emphasizing the need for the assessee to be diligent and cooperative in future proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396736 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SUKESH KUMAR JAIN
• Keywords: Set aside; Principle of natural justice
• Section: 144; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 110/Agr/2025 Assessment Year: 2017-18 Ganpati Enterprises, 94, Old Vijay Nagar Colony, Agra – 282005 (UP). Vs. Income-tax Officer, Ward 1(1)(1), Agra. PAN : AANFG3520G (Appellant) (Respondent) ORDER Per Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 27.09.2023(communication of order on 03.02.2025) passed in Appeal No. CIT (APPEALS) 1, AGRA/10237/2019-20 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”), wherein the learned first appellate authority has confirmed assessee’s total assessed income of Rs.3,40,61,893/- as against returned income of Rs.2,94,060/- determined by the Assessing Officer vide assessment order dated Assessee by None Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 21.05.2025 Date of pronouncement 29.05.2025 ITA No.110/Agr/2025 2 | P a g e 18.10.2019 passed u/s. 144 of the Act and dismissed assessee’s first appeal. 2. Briefly stating, the assessee is a partnership firm and e-filed its return of income for A.Y. 2017-18 on 25.10.2017 showing income of Rs.2,94,060/- The return was processed u/s. 143(1) of the Act. Thereafter, case was selected for scrutiny. Statutory notices u/s. 143(2) and 142(1) of the Act were issued and served upon the assessee. After considering the submissions of the assessee, ld. Assessing Officer assessed total income at Rs.3,40,61,893/- u/s. 144 of the Act. 3. Aggrieved, assessee preferred an appeal before the ld. CIT(Appeals), who dismissed assessee’s appeal. 4. This appeal has been filed on the ground that the said addition in assessee’s returned income is unjustified, arbitrary and legally untenable, ignoring the deposits recorded in the assessee’s cash book. 5. None responded for the assessee. Perused the records and heard the learned Departmental Representative in attendance, who supported the impugned order. 6. Perusal of the impugned order shows that certain submissions were made by the assessee through ITBA Portal before CIT(Appeals)-1, Agra. However, after the migration of the appeal to NFAC, Delhi, the assessee did not make any compliance/submission in response to notice dated ITA No.110/Agr/2025 3 | P a g e 18.07.2023. Thereafter, another opportunity was granted to the assessee to submit its submission latest by 23.08.2023, but for no avail. The irresponsive conduct of the assessee cannot be appreciated. However, it appears that the principles of natural justice have not been observed in substance. The impugned order seems to have been passed ex parte for want of assessee’s submissions. 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 of the matter afresh. 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. 27.09.2023 is set aside. Order pronounced in the open court on 29.05.2025. Sd/- Sd/- (MANISH AGARWAL) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2025 ITA No.110/Agr/2025 4 | P a g e *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra "