INCOME TAX OFFICER, LUDHIANA V. SHUBHAM YARNS PRIVATE LIMITED, LUDHIANA

ITA 323/CHANDI/2025

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A), which had remanded the assessment of M/s Shubham Yarns Private Limited back to the AO for a fresh assessment. The AO had initially reopened the case and made additions for alleged bogus purchases amounting to Rs. 375.25 Lacs under sections 147, 144, and 144B of the Income Tax Act. The CIT(A) found that the assessee had not made effective representation during the assessment proceedings and thus exercised his remand powers. The Tribunal dismissed the revenue's appeal, agreeing with the CIT(A)'s decision to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774799 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 04-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMAR VIRTUAL MODE LD
• Assessee Lawyers: ASHWANI KUMAR LD
• Keywords: Bogus purchase; Bogus
• Section: 147

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH VIRTUAL HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.323/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2014-15) ITO Room No 228 Aaykar Bhawan, Rishi Nagar Ludhiana. बनाम/ Vs. M/s Shubham Yarns Private Limited 61-A Sant Nagar, Ludhiana-141001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.AAGCS-8023-C (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Arvind Kumar (CIT)(Virtual Mode) – Ld. DR ŮȑथŎ की ओर से / Respondent by : Shri Ashwani Kumar (CA)- Ld. AR सुनवाई की तारीख / Date of Hearing : 26-08-2025 घोषणा की तारीख / Date of Pronouncement : 02-09-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2014-15 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 10-01-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 r.w.s. 144B of the Act on 26-03-2022. The Ld. AO reopened the case of the assessee and made addition of alleged bogus purchases for Printed from counselvise.com 2 Rs.375.25 Lacs. The assessee failed to make any effective representation during assessment proceedings. Considering this fact, Ld. CIT(A) exercised remand power in terms of proviso to Sec.251(1)(a) and directed Ld. AO to make fresh assessment. So aggrieved, the revenue is in further appeals before us. The Ld. CIT-DR has opposed remand back of the matter whereas Ld. AR challenged the reassessment jurisdiction of Ld. AO on legal grounds. 2. We are of the considered opinion that the assessment was framed on best judgment basis. Considering assessee’s submissions / evidences during first appeal which would have material bearing on the assessment of the assessee, Ld. AO was directed to make fresh assessment. In our considered opinion, on the facts of the case, the power of remand has validly been exercised by Ld. CIT(A) and we find no infirmity in the same. So far as the legal grounds as raised by Ld. AR are concerned, the same has not been adjudicated by Ld. CIT(A). Therefore, the assessee is at liberty to plead and prove the same before Ld. AO. All the issues are kept open. 3. The appeal stand dismissed. Order pronounced on 02-09-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 02-09-2025. Printed from counselvise.com 3 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "