GURU KIRPA ENTERPRISES,NAWANSHAHR V. ITO WARD, NAWANSHAHR, NAWANSHAHR

ITA 174/ASR/2025

AI Insights

The case involves Guru Kirpa Enterprises, a partnership firm engaged in the business of trading liquor, which appealed against the order of the ld. CIT (A), NFAC, Delhi. The appeal was initially dismissed due to non-compliance with various notices and lack of evidence to support the loan transactions, which resulted in an addition of Rs.2.94 crores as unexplained credit under section 68 of the Income Tax Act. The Tribunal noted that the assessee was not properly notified of the hearing and thus remanded the case back to the CIT(A) to allow the assessee another opportunity to present their case with supporting documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787521 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 25-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS
• Keywords: Opportunity of being heard; Corroborative evidences; Unexplained cash credit
• Section: 144; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE SH. MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER (Hybrid Hearing) I.T.A. No. 174/Asr/2025 Assessment Year: 2018-19 Guru Kirpa Enterprises K.C. Tower, Nawanshahr, Punjab. [PAN:-AAPFG3956J] (Appellant) Vs. ITO, Ward, Nawanshahr. (Respondent) Appellant by None (Written Submission) Respondent by Sh. Charan Dass, Sr. DR Date of Hearing 10.11.2025 Date of Pronouncement 21.11.2025 ORDER Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT (A), NFAC, Delhi, passed u/s 250 of the Act, 1961 vide order dated 16.01.2025 which has emanated from the order of AO, NFAC, Delhi, passed u/s 144 r.w.s. 144B of the Act, vide order dated 04.06.2021. Printed from counselvise.com I.T.A. No. 174/Asr/2025 Assessment Year: 2018-19 2 2. The assessee has taken four grounds of appeal in Form No. 36 and all of them relates to the issue of non-receipt of notice of hearing from the office of the ld. CIT(A) and dismissal of the appeal by the first appellate authority without adjudicating on the grounds contained in the memorandum of appeal in Form 35. 3. Brief facts of the case are that the assessee is a partnership firm engaged in the business of trading of liquor and the return filed was subjected to scrutiny and in course of scrutiny proceedings loan transactions were not proved to the satisfaction of the AO, resulting in an addition of Rs.2.94 crores on account of unexplained credit u/s 68 of the Act. 4. Before the first appellate authority there has not been any compliance to various notices issued and in absence of any proper explanation with supporting evidence, the appeal has been dismissed for want of creditworthiness and genuineness of the loan’s transactions. 5. Now the assessee is before the Tribunal stating that proper and sufficient opportunity has never been allowed by the first appellate authority for representing the case. 6. There was no appearance before the tribunal by the assessee or his counsel in spite of repeated calls, but the assessee has filed a written submissions alongwith an affidavit from one of the partners Mr. Harpal Singh, where it has been explained that Printed from counselvise.com I.T.A. No. 174/Asr/2025 Assessment Year: 2018-19 3 no compliance to notice issued under the Act, could be made because notices has been served on the e-mail id of his earlier counsel Mr. A.K. Randhawa, CA on the e- mail id [e-mail], and the said person has not intimated the assessee. As such, he requested for one more opportunity of hearing so that he can furnish the documentary evidences in support of his contention contained in the grounds of appeal and can prove the identity, genuineness and creditworthiness of the loan creditors. 7. The ld. DR relied on the order of the ld. CIT(A) but have no objection if the matter is remanded back to the file of the ld. first appellate authority for fresh consideration of documentary evidences to be filed. 8. We have considered the materials on record and the written submissions filed by the assessee and we are of the opinion that it is not ascertainable from the order of the ld. first appellate authority regarding the issue and service of notice on the assessee and it is also not understood as to whether notices has been issued in the e- mail id as mentioned in Form 35. 8.1 As such, we are of the opinion that in the interest of justice one more opportunity should be provided to the assessee to furnish all documentary evidences in order to explain and prove the identity, creditworthiness and the genuineness of the loan transactions to the satisfaction of the first appellate authority. Printed from counselvise.com I.T.A. No. 174/Asr/2025 Assessment Year: 2018-19 4 8.2 As such, in the interest of justice, we remand the matter back to the file of the ld. CIT(A) to allow the assessee one more opportunity of hearing to prove his case and we also direct the assessee to file all documentary evidences in support of his contention, and to fully cooperate in fresh appeal proceedings. The assessee to be allowed opportunity of being heard. 9. We have not expressed any opinion on merits of the case and all legal issues are left open. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 21.11.2025 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (UDAYAN DASGUPTA) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order Printed from counselvise.com "