LAHOTI PROPERTIES AND INFRABUILDCON VENTURE,LATUR V. ITO, WARD-1, NANDED, NANDED

ITA 2564/PUN/2025

AI Insights

The case involves Lahoti Properties and Infrabuildcon Venture, a partnership firm engaged in the construction of residential housing projects, which appealed against an ex-parte order from the Ld. CIT(A) / NFAC, Delhi. The firm had filed its return declaring a total income of Rs.1,25,000 for the assessment year 2022-23, which was significantly lower than the income assessed by the Assessing Officer at Rs.8,81,87,090. The discrepancies were attributed to estimated income from construction contracts and unexplained cash credits. The appeal was initially dismissed due to non-compliance with procedural notices, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835528 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Appeal Filed On: 31-10-2025
• Other Referred Cases: CIT vs. B.N. Bhattacharjee and another, M/s. Chhabra Land and Housing Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Assessee Lawyers: KISHOR B PHADKE
• Keywords: Unexplained cash credit
• Section: 144; 142(1); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No.2564/PUN/2025 Assessment year : 2022-23 Lahoti Properties and Infrabuildcon Venture Lahoti Compound, Dayaram Road, Hatte Road, Latur S.O., Latur – 413512 Vs. ITO, Ward 1, Nanded PAN: AADFL9693F (Appellant) (Respondent) Assessee by : Shri Kishor B Phadke Department by : Shri Chandra Vijay, CIT Date of hearing : 10-02-2026 Date of pronouncement : 10-02-2026 O R D E R PER R.K. PANDA, VP: This appeal filed by the assessee is directed against the ex-parte order dated 20.08.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2022-23. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the additions made by the Assessing Officer. 3. Facts of the case, in brief, are that the assessee is a partnership firm engaged in the business of construction of residential housing projects. It filed its return of Printed from counselvise.com 2 ITA No.2564/PUN/2025 income on 14.10.2022 declaring total income of Rs.1,25,000/-. The return was selected for scrutiny under CASS for the following reasons: i) Large stock-in-trade without recognising it as revenue for many years ii) High liabilities as compared to low income/receipts iii) Large difference in the opening stock of current year (in Trading & Manufacturing account) and closing stock of previous year shown in P&L a/c as per Return of Income 4. Accordingly statutory notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued and served on the assessee. Thereafter, the Assessing Officer issued notice u/s 142(1) of the Act along with a questionnaire calling for various details. However, despite number of opportunities granted, the assessee did not make any submission. In view of the above, the Assessing Officer proceeded to complete the assessment u/s 144 r.w.s. 144B of the Act and determined the total income of the assessee at Rs.8,81,87,090/- as against the returned income of Rs.1,25,000/- by making the following additions: i) Variation on account of estimated income from construction contracts business Rs.5,97,30,238/- ii) Variation on account of unexplained cash credit u/s 68 for unexplained liability Rs.2,83,31,851/- 5. Since the assessee did not comply to the various notices issued by the office of the Ld. CIT(A) / NFAC, therefore, the Ld. CIT(A) / NFAC dismissed the appeal by relying on the decision of Hon’ble Supreme Court in the case of CIT vs. B.N. Printed from counselvise.com 3 ITA No.2564/PUN/2025 Bhattacharjee and another reported in 118 ITR 461 (SC) and the decision of the Tribunal in the case of M/s. Chhabra Land and Housing Ltd. 6. Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal. 7. The Ld. Counsel for the assessee at the outset submitted that due to some miscommunication the assessee could not represent either before the Assessing Officer or before the Ld. CIT(A) / NFAC. He submitted that given an opportunity, the assessee is in a position to substantiate its case by filing the requisite details. 8. The Ld. DR on the other hand submitted that despite number of opportunities granted by the Assessing Officer as well as the Ld. CIT(A) / NFAC the assessee did not make any submission and therefore, the order of the Ld. CIT(A) / NFAC confirming the addition made by the Assessing Officer should be upheld. 9. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that due to non-compliance to the statutory notices issued by the Assessing Officer he made addition of Rs.5,97,30,238/- being the variation on account of estimated income from construction contract business and Rs.2,83,31,851/- as unexplained cash credit u/s Printed from counselvise.com 4 ITA No.2564/PUN/2025 68 of the Act. We find due to non-compliance to the various statutory notices issued by the office of the Ld. CIT(A) / NFAC, he dismissed the appeal for want of prosecution. Since it is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee is in a position to substantiate its case by filing the requisite details, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of Ld. CIT(A) / NFAC with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to submit the requisite details before the Ld. CIT(A) / NFAC on the appointed date without seeking any adjournment under any pretext, failing which the Ld. CIT(A) / NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 10th February, 2026. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 10th February, 2026 GCVSR Printed from counselvise.com 5 ITA No.2564/PUN/2025 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 10.02.2026 Sr. PS/PS 2 Draft placed before author 10.02.2026 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Office Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order Printed from counselvise.com "