KESHAW KUMAR GUPTA,PATNA V. DCIT, CENTRAL CIRCLE-3, PATNA

ITA 42/PAT/2025

AI Insights

This case involves an appeal by Keshaw Kumar Gupta against the order of the Ld. Commissioner of Income Tax (Appeals), Patna-3, which confirmed an assessment order adding Rs. 78,66,797 to the assessee's income for unexplained investment in stock for the assessment year 2018-19. The appeal was heard by the Income Tax Appellate Tribunal, Patna Bench, where the assessee's counsel argued for a de novo adjudication, citing insufficient opportunity to be heard at the previous stages. The Senior Departmental Representative opposed this request. The Tribunal decided to grant one more opportunity to the assessee, emphasizing the principles of natural justice, and set conditions for the same.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471235 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: MANISH RASTOGI
• Keywords: Set aside; Unexplained investment; Principle of natural justice
• Section: 143(3); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH VIRTUAL HEARING AT KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 42/PAT/2025 Assessment Year: 2018-19 Keshaw Kumar Gupta Prop. M/s. Shilpee Jewellers Bakarganj, Patna-800004. (PAN: ADKPG3879J) Vs DCIT, Central Circle-3, Patna. (Appellant) (Respondent) Present for: Appellant by : Shri Manish Rastogi, Advocate Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 25.02.2025 Date of Pronouncement : 25.02.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), Patna-3 [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/APL/S/250/2024-25/1070782194(1) dated 30.11.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2018-19. 2. Shri Manish Rastogi, Advocate appeared on behalf of the assessee and Shri Ashwani Kr. Singal, JCIT appeared on behalf of the revenue. 3. The Ld. CIT(A) confirmed the assessment order passed by the Assessing Officer u/s. 143(3) of the Act at an income of Rs.7,95,74,967/- against the returned income of Rs. 7,17,08,170/- thereby making an addition of Rs. 78,66,797/- on account of unexplained investment in 2 ITA No.42/Pat/2025 Keshaw Kumar Gupta, AY: 2018-19 stock. Vide ground no. 5 the assessee also stated that the order of the Ld. CIT(A) is an ex parte order without allowing proper opportunity of being heard. From perusal of the order of the ld. CIT(A), we find that though the Ld. CIT(A) provided sufficient opportunity of hearing to the assessee but there was no response on behalf of the assessee. The Ld. CIT(A), therefore, passed the ex parte order. At the time of hearing before us, the Ld. Counsel for the assessee prayed before the Bench to set aside the orders of both the authorities below and restore the appeal to the file of the Assessing Officer to de novo adjudicate the issue. Ld. Sr. DR opposed this prayer of the assessee. 4. Since the assessee despite being provided with sufficient opportunities of hearing before the Ld. CIT(A) did not present himself in the appellate proceedings, keeping this in mind and also treating this attitude against the principles of natural justice, we are of the view that assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Assessing Officer subject to the assessee paying a cost of Rs.10,000/- to the Bihar Income Tax Bar Association within sixty days from the date of this order and receipt of the same would be produced before the Assessing Officer. Should the assessee not pay the abovementioned cost of Rs. 10,000/- within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed. 5. In the result, the appeal of the assessee is allowed for statistical purpose subject to above directions. Order pronounced in the open court. Sd/- Sd/- (Sanjay Awasthi) (George Mathan) Accountant Member Judicial Member Dated: 25th February, 2025 3 ITA No.42/Pat/2025 Keshaw Kumar Gupta, AY: 2018-19 JD, Sr. P.S. Copy to: 1. The Appellant: Shri Keshaw Kumar Gupta 2. The Respondent. DCIT, Central Circle-3, Patna. 3. CIT(A), Patna-3 4. Pr. CIT 5. DR, ITAT, Patna Bench, Patna 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "