HARIOM,JHANSI V. ITO WARD 2(3)(1), JHASNI

ITA 203/AGR/2025

AI Insights

The case involves an appeal by the assessee, Hariom, against the order of the Commissioner of Income-tax (Appeals), which confirmed the additions made by the Assessing Officer regarding unexplained expenses and non-business expenses related to a GST penalty. The CIT(Appeals) had dismissed the assessee's appeal ex parte, leading to the current appeal. The tribunal found that the CIT(Appeals) had not adequately discussed the merits of the case and had merely reiterated the assessment order without proper analysis or reasoning, which is required under section 250(6) of the Income-tax Act, 1961. Consequently, the tribunal decided to remit the matter back to the CIT(Appeals) for a detailed examination and fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772037 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Keywords: Business expenditure; Bogus purchase; Principle of natural justice; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 203/Agr/2025 Assessment Year: 2021-22 Hariom, 420, Badagaon Gate-2, Jhansi (UP). Vs. Income-tax Officer, Ward 2(3)(1), Jhansi. PAN : ACFPH3868L (Appellant) (Respondent) Assessee by None Department by Sh. Anil Kumar, Sr. DR Date of hearing 19.08.2025 Date of pronouncement 29.08.2025 ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER: This appeal has been preferred by assessee against the impugned order dated 27.02.2025 passed in Appeal No. NFAC/2020-21/10204808 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 2021-22, wherein the ld. CIT(Appeals) has dismissed assessee’s first appeal ex parte, confirming the addition of Rs.8,58,26,741/- made by Assessing Officer on account of unexplained expenses/bogus purchases and addition of Rs.4,41,368/- as non-business expenses, being in the nature of GST penalty paid by the assessee. Printed from counselvise.com ITA No.203/Agr/2025 2 | P a g e 2. This appeal has been preferred on the ground, in addition to others, that the ld. CIT(Appeals) has erred in dismissing first appeal ex parte in violation of the principles of natural justice by failing to provide adequate opportunity to the appellant to be heard. 3. None is present on behalf of the appellant/assessee. Perused the records and heard learned departmental representative for the revenue, who supported the impugned order. 4. Perusal of the impugned order shows that during the appellate proceedings, learned CIT(Appeals) issued various notices on 31.01.2024, 08.01.2025, 15.01.2025, 23.01.2025, 03.02.2025 and 18.02.2025, but for no avail. Such a conduct of the assessee cannot be appreciated. It is, however, noticed that learned CIT(Appeals) has passed ex-parte impugned order without any discussion on the merits of the case except reiterating the entire assessment order, whereas learned CIT(Appeals) was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. It is well settled principle that the ‘reason’ is the life of law. It is that filament that injects soul to the order. Absence of analysis not only evinces non- application of mind but also mummifies the core spirit of the order. 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 Printed from counselvise.com ITA No.203/Agr/2025 3 | P a g e 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 for statistical purposes accordingly. 5. In the result, appeal is allowed for statistical purposes. Order pronounced in the open court on 29.08.2025. Sd/- Sd/- (M. BALAGANESH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.08.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "