KUTCH LEAFIN LIMITED,DELHI V. THE ITO, WARD-2(1)(1), AHMEDABAD

ITA 1738/AHD/2025

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Kutch Leafin Limited appealed against the order of the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, which dismissed their appeal on technical grounds related to the delay in filing. The assessee argued that the delay was due to a reasonable and bona fide cause. Additionally, the assessee contested the reopening of the assessment under Section 147 of the Income-tax Act, 1961, and the subsequent additions made by the Assessing Officer (AO) without proper justification or adherence to procedural requirements. The tribunal noted the assessee's non-compliance with procedural notices but decided to remand the case for a fresh examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792064 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 12-09-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Assessee Lawyers: SULABH PADSHAH
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice; Tangible material
• Section: 147; 271(1)(c); 234B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1738/Ahd/2025 (Assessment Year: 2012-13) Kutch Leafin Limited, 4754-57/123, 3rd Floor, T-8, Akarshan Bhawan, Darya Ganj, Darya Ganj, Delhi-110002 [PAN :AABCM 3733 G] Vs. The Income Tax Officer, Ward 2(1)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Sulabh Padshah, AR Respondent by: Shri Abhijit, Sr DR Date of Hearing 09.12.2025 Date of Pronouncement 10.12.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short) dated 14.07.2025 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2012-13. 2. The assessee has raised the following grounds of appeal:- “1. The Ld. CIT(A) has erred in law and on facts in dismissing the appeal of the Appellant on account of delay in filing, without appreciating that the delay of 13 days was due to reasonable and bona fide cause. The dismissal of appeal on such hyper-technical ground has resulted in denial of justice. 2. The Ld. CIT(A) has erred in not adjudicating the appeal on merits despite substantial grounds being raised. The dismissal merely on technical grounds is unjust, improper and against the settled principles of law 3. The Ld. AO has erred in reopening the assessment u/s 147 of the Act merely on the basis of information from the Investigation Wing, without Printed from counselvise.com ITA No. 1738/Ahd/2025 Kutch Leafin Limited Vs. ITO Asst. Year : 2012-13 - 2– any independent application of mind, verification, OR tangible material, rendering the reopening bad in law. 4. The Ld. AO has erred in making an arbitrary and ad hoc addition of 1% of total bank credits amounting to Rs.61,59,600/- without invoking any specific provision of the Act, without rejecting the books of account, and without providing any rationale for such addition. 5. The Ld. AO has erred in making the impugned addition without granting proper and effective opportunity of being heard, without furnishing reasons recorded for reopening, and without issuing any show cause notice before making the addition, thereby violating natural justice. 6. The Ld. AO has erred in initiating penalty proceedings u/s 271(1)(c) mechanically and without recording satisfaction, though there was no concealment of income OR furnishing of inaccurate particulars by the Appellant. 7. The Ld. AO has erred in law and on facts in initiated interest proceedings u/s 234A, 234B & 234C despite the fact that the amount added to the total income of the assessee is bad in law and proposing on interest on same is also and same need to be deleted. 8. The assessee request your good selves that since he was not given proper opportunity of being heard, submission of additional evidence at the time of appeal proceedings' is requested.” 3. From the record, we find that the assessee did not comply with the notices issued by the Ld. CIT(A) on eight occasions. The Assessing Officer made an addition of Rs.61,59,600/- being 1% of the total net credits found in the bank accounts amounting to Rs.61,59,60,057/-. 4. The Ld. DR submitted before us that the assessee has been categorized as NBFC under ‘High Risk Financial Institutions’ (by BIU-IND) on account of non- compliance with the PMLA and PML Rules, i.e. non-registration of Principal Officer (PO), which is found at Sr. No. 4520 as ‘MANDHANA FEAFIN LIMITED’. The Ld. DR also submitted that the assessee has been registered at various addresses; however, we do not consider an impediment to adjudicating the case. Printed from counselvise.com ITA No. 1738/Ahd/2025 Kutch Leafin Limited Vs. ITO Asst. Year : 2012-13 - 3– 5. The Ld. CIT(A) has passed an ex-parte order owing to non-compliance by the assessee. We, therefore, in the interest of justice, we remand the matter to the file of the Ld. CIT(A) for de-novo adjudication. 6. In the result, appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 10.12.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 10.12.2025 *btk आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation ……in the open court on 09.12.2025.. 2. Date on which the typed draft is placed before the Dictating Member ……09.12.2025 3. Other Member …09.12.2025 4. Date on which the approved draft comes to the Sr.P.S./P.S ….09.12.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement …10.12.25 6. Date on which the fair order comes back to the Sr.P.S./P.S …10.12.2025 7. Date on which the file goes to the Bench Clerk …..10.12.2025 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "