LALIT KUMAR AGARWAL,KOTA V. ITO, RJN-W-(780)(2), KOTA

ITA 1545/JPR/2024

AI Insights

The case involves Lalit Kumar Agarwal, the appellant, who challenged the order dated 29.10.2024 passed by the Learned CIT(A), NFAC, Delhi, under section 250 of the Income Tax Act, 1961. The appeal was initially dismissed by the CIT(A), sustaining the assessment order dated 27.3.2022, which computed the total income of the assessee at Rs. 44,63,150 by adding Rs. 28,26,850, the amount of losses claimed by the assessee in computing business income, found to be a non-genuine claim. The assessee was non-compliant with notices from both the Assessing Officer and the CIT(A). The Tribunal, considering the principles of natural justice and the non-compliance of the appellant, decided to remand the matter back to the CIT(A) for a fresh decision after providing another opportunity to the appellant to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469918 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTAM SINGH CHOUDHARY
• Keywords: Business income; Opportunity of being heard; Transactions in derivatives; Non compliance
• Section: 147; 250

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”SMC” JAIPUR Jh xxu xks;y] ys[kk lnL; ,o Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1545/JP/2024 fu/kZkj.k o\"kZ@Assessment Year : 2014-15 Lalit Kumar Agarwal Rampura Bazar, Bhatapada Rampura, Kota cuke Vs. ITO, Ward -2(2), Kota LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AMDPA3163B vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : None. jktLo dh vksj ls@ Revenue by : Sh. Gautam Singh Choudhary, JCIT-DR lquokbZ dh rkjh[k@ Date of Hearing : 25/02/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 25/02/2025 vkns'k@ ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER By way of present appeal, assessee has challenged order dated 29.10.2024 passed by Learned CIT(A), NFAC, Delhi, under section 250 of the Income Tax Act, 1961 (in short “the Act”). 2. Vide impugned order, appeal filed by the assessee on 27.4.2022 before Learned CIT(A) has been dismissed and the assessment order 2 ITA No. 1545/JP/2024 Lalit Kumar Agarwal dated 27.3.2022 passed under section 147 r.w.s. 144 of the Act has been sustained. 3. Assessment order came to be passed relating to the Assessment Year 2014-15 while computing the total income of the assessee at Rs. 44,63,150/-by making addition of Rs. 28,26,850/- i.e. the amount of losses claimed by the assessee in computing business income having been found to be a non genuine claim. Information with the department was that the assessee had made various commodity transactions with NSEL during the FY 2013-14 and name of the assessee was there in the list of clients as provided by NSEL. 4. Assessment order would reveal that the assessee remained non compliant as regards notices, including show cause notice, issued by the Assessing Officer. 5. When the assessee went in appeal, Learned CIT(A) issued notices to the appellant for hearing, but, once again he remained non compliant. Ample opportunities were granted by the office of NFAC in this regard. Ultimately, vide impugned order the appeal filed by the assessee came to be dimisssed for the reasons recorded in para 3.4 of the order. 3 ITA No. 1545/JP/2024 Lalit Kumar Agarwal 6. Today, when the appeal has been taken up, adjournment has been prayed by sending request by on e-mail ID, on the ground that the appellant is unwell. 7. Having regard to ground No.3 of the grounds of appeal and that the three notices under section 250 of the Act were issued at short intervals i.e. during the period from 24.9.2024 to 17.10.2024, notwithstanding absence on behalf of the appellant, we have heard Learned DR for the Revenue while referring to the significant aspect of the assessee remaining non compliant before the lower authorities despite opportunities of being heard, and put it to him if he has any objection to the remand of the matter to Learned CIT(A) for decision afresh after providing another opportunity to the assessee of being heard. Learned DR has very candidly raised no objection to the remitting of the matter to Learned CIT(A) to enable the assessee another opportunity of being heard there, and for decision of the appeal fresh. Result 8. In the given situation, concerned about compliance with the principles of natural justice, including the one of being heard, in the interest of justice, we dispose of this 4 ITA No. 1545/JP/2024 Lalit Kumar Agarwal appeal and while setting aside the impugned order, restore the appeal to the files of Learned CIT(A), NFAC, for disposal afresh in accordance with law, while providing reasonable opportunity of being heard. The appellant shall participate in the proceedings there without fail. Order pronounced in open court on 25th of February, 2025. Sd/- Sd/- ¼xxu xks;y ½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 25/02/2025 *Ganesh Kumar, Sr. PS vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Lalit Kumar Agarwal, Kota 2. izR;FkhZ@ The Respondent- ITO, Ward-2 (2), Kota 3. vk;dj vk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZ QkbZy@ Guard File (ITA No. 1545/JP/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar "