HASMUKH DOULATRAM AMESAR,RAIPUR V. ITO WARD-4(1), NAGPUR, NAGPUR

ITA 197/NAG/2024

AI Insights

The case involves an appeal by Hasmukh Daulatram Amesar against the order of the Commissioner of Income Tax (Appeals), which sustained additions to the assessee's income for the assessment year 2018-19. The additions included an estimated profit on cash withdrawals and commission income as reflected in Form 26AS. The CIT(A) had passed an ex-parte order due to the absence of the assessee, leading to the current appeal. The Tribunal found that the principles of natural justice were not adequately followed in the initial proceedings and thus remitted the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24437 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; FORM 26AS

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER SMC MATTER ITA no.197/Nag./2024 (Assessment Year : 2018–19) Hasmukh Daulatram Amesar C/o Hariom Trading Company Nemichand Gali, Ganjpara Raipur 492 001 PAN – AHLPA7961J ……………. Appellant v/s Income Tax Officer Ward–4(1), Nagpur ……………. Respondent Assessee by : None Revenue by : Shri Abhay Y. Marathe Date of Hearing – 04/12/2024 Date of Order – 08/01/2025 O R D E R Captioned appeal by the assessee is against the impugned order dated 29/01/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2018–19. 2. The assessee has raised following grounds:– “1. On the facts and circumstances of the case and in law, Id CIT(A) has erred in sustaining addition of Rs.19,22,220 which is treated as estimated profit at 6% of Rs.3,20,37,000 (i.e. cash withdraw from bank), is unjustified and is liable to be deleted.\" 2. On the facts and circumstances of the case and in law, Id CIT(A) has erred in sustaining addition of Rs.16,763 on the count of commission income as reflected in Form 26AS, is unjustified and is liable to be deleted. 2 Hasmukh Daulatram Amesar 3. The appellant craves leave, to add, urge, alter, modify or withdraw any grounds before or at the time of hearing.\" 3. When this appeal is taken up for hearing, none appeared on behalf of the assessee. The learned CIT(A) passed an ex-parte order. 2. The learned D.R. submitted that despite the learned CIT(A) provided sufficient opportunities to the assesse, however, the assessee did not appear before the learned CIT(A) and not furnished relevant details. He strongly supported the orders passed by the learned CIT(A). 3. I have heard the learned Departmental Representative, perused the materials available on record and gone through orders of the authorities below. I find that though the learned CIT(A) granted opportunities to the assessee to substantiate its case, ultimately, the order passed by him is an ex-parte order. Therefore, I am of the opinion that by following the principles of natural justice, one opportunity should be given to the assesse to substantiate the case before the learned CIT(A). In view of the above, the order passed by the learned CIT(A) is set aside and remit the matter to the file of the learned CIT(A) and direct him to adjudicate the matter afresh on merit and in accordance with law after providing reasonable opportunity of being heard to the assessee. It is also directed that the assessee should not seek adjournment without there being a justified reason. Accordingly, all the grounds raised by the assessee in this appeal are allowed for statistical purposes. 3 Hasmukh Daulatram Amesar 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 08/01/2025 NAGPUR, DATED: 08/01/2025 Sd/- V. DURGA RAO JUDICIAL MEMBER Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "