M/S. KING MOBILES,VELLORE V. ITO WARD 1 VELLORE, VELLORE

SA 9/CHNY/2026

AI Insights

The case involves M/s. King Mobiles, a firm engaged in selling mobile phones, which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The appeal was related to the reassessment for the Assessment Year 2018-19, where the AO had added a substantial amount to the assessee's income, suspecting bogus purchases intended to inflate expenses and reduce taxable income. The CIT(A) dismissed the appeal ex-parte due to non-response from the assessee. The Tribunal found that the assessee should be given another opportunity to present their case, leading to the remittance of the case back to the AO for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837527 (ITAT-CHENNAI)
• Duration Of Justice: 27 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 16-02-2026
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 20-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: RAVI KANNAN
• Keywords: Reassessment proceedings; Bogus purchase; Application of stay; Bogus
• Section: 133(6); 69C

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI ŵी एबी टी. वकŎ, Ɋाियक सद˟ एवं सुŵी पदमावती यस, लेखा सद˟ क े समƗ BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.236/Chny/2026 िनधाŊरण वषŊ /Assessment Year: 2018-19 & S.A. No. 09/CHNY/2026 [In ITA No.236/CHNY/2026] M/s. King Mobiles, No.34-B, Vijaya Complex, GPH Road, Vellore – 632 001. PAN: AAJFK 0723B Vs. The Income Tax Officer, Ward-1, Vellore. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथŎ की ओर से/ Appellant by : Mr. Ravi Kannan, Advocate ŮȑथŎ की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 11.02.2026 घोषणा की तारीख /Date of Pronouncement : 16.02.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal and the stay application by the assessee are against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 05.01.2026 for Assessment Year (AY) 2018-19. Printed from counselvise.com ITA No.236 /Chny/2026 M/s. King Mobiles :- 2 -: 2. The assessee is a firm engaged in the business of selling mobile phones. The assessee filed a return of income for A.Y 2018-19 on 25.01.2019 declaring total income of Rs. 16,37,520/-. The A.O reopened the assessment of the assessee for the reason that the assessee is involved in the transaction of bogus purchases with an intention to increase the expenditure and reduce the taxable income of the assessee. The A.O during the course of reassessment proceedings issued notices u/s. 133(6) of the Act to 29 suppliers from whom the assessee has made purchases. Since the A.O received confirmation from only 14 out of the 29 parties, the A.O considered the balance purchases to the tune of Rs. 20,87,85,137/- as addition u/s. 69C of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). 3. The CIT(A) dismissed the appeal ex-parte for the reason that the assessee did not respond to the notices nor did the assessee filed any submissions. The assessee is in appeal before the Tribunal against the order of the CIT(A). 4. We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that all the purchases made by the assessee are genuine and that the A.O treated the purchases as bogus merely for the reason that certain parties did not respond the notices u/s. 133(6) of the Act. The Ld. AR further submitted that though the CIT(A) has stated that the assessee has made submissions (refer para 4 of page 5 of CIT(A) order) but has dismissed the appeal ex-parte without considering the submissions. The Ld. AR accordingly prayed that one more opportunity may be given. Considering the facts and circumstances unique to the assessee's case, we are of the considered view that the assessee Printed from counselvise.com ITA No.236 /Chny/2026 M/s. King Mobiles :- 3 -: may be given one more opportunity to represent the case properly before the lower authorities. Accordingly we remit the appeal back to the AO with a direction to call for the necessary documents with regard to the impugned additions and decide the issue in accordance with law. The assessee is directed to file the required evidences as may be called for and cooperate with the assessment proceedings. It is ordered accordingly. 5. Since we have remitted the appeal back to the AO for considering the impugned additions afresh, the stay petition filed by the assessee has become infructuous and dismissed accordingly. 6. In the result, the appeal of the assessee is allowed for statistical purposes and the stay is dismissed as infructuous. Order pronounced on 16th day of February, 2026 at Chennai. Sd/- Sd/- (एबी टी. वकŎ) (ABY. T. Varkey) ᭠याियक सद᭭य / Judicial Member (पदमावती यस) (Padmavathy.S) लेखा सदèय /Accountant Member चेÛनई/Chennai, Ǒदनांक/Dated: 16th February, 2026. EDN, Sr. P.S आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF Printed from counselvise.com "