NARENDRA SACHIN ENTERPRISES,LUCKNOW V. ITO NFAC, LUCKNOW

ITA 666/LKW/2024

AI Insights

The case involves Narendra Sachin Enterprises, which appealed against the orders of the Commissioner of Income Tax (Appeals) concerning the assessment year 2018-19. The primary issues were the disallowance of unexplained license fees and certain expenditures, along with a penalty imposed under section 271A of the Income Tax Act. The Assessing Officer had initially processed the return and made significant adjustments to the declared income, which led to the imposition of a penalty. The CIT(A) upheld these adjustments, prompting the appeal to the Income Tax Appellate Tribunal. The Tribunal found that the assessee was not provided a reasonable opportunity to be heard, leading to the setting aside of the CIT(A)'s orders and a directive for a new assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784437 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 14-11-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KUMAR
• Keywords: Set aside; Opportunity of being heard
• Section: 144

Judgement Text

"I.T.A. No.666 & 667/Lkw/2024 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘B’, LUCKNOW BEFORE SHRI SUBHASH MALGURIA, JUDICIAL MEMBER AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER I.T.A. No.666 & 667/Lkw/2024 Assessment year:2018-19 Narendra Sachin Enterprises 512E/286, 5th Lane, Nishatganj, Lucknow-226 001 PAN:AANFN0282E Vs. Income Tax Officer, NFAC (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. These two appeals vide I.T.A. No.666/Lkw/2024 and 667/Lkw/2024 have been filed by the assessee for assessment year 2018-19 against the impugned appellate orders each dated 19/09/2024 (DIN & Order No.ITBA/NFAC/S/250/2024-25/1068857969(1) and DIN & Order No. ITBA/NFAC/S/250/2024-25/1068859868(1) respectively of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. Appellant by None Respondent by Shri Amit Kumar, D.R. Printed from counselvise.com I.T.A. No.666 & 667/Lkw/2024 Assessment Year:2018-19 2 2. The facts of the case, in brief, are that the assessee was engaged in trading of liquor business. The assessee filed its return of income declaring total income of Rs.95,140/-. The Assessing Officer processed the return filed by the assessee and passed assessment order dated 26/08/2021 under section 144 read with section 144B of the I.T. Act and determined the total income of the assessee at Rs.27,71,185/- by making disallowance of Rs.19,26,000/- on account of unexplained license fees and Rs.7,50,045/- on account of disallowance of expenditures. The Assessing Officer also initiated penalty proceedings under section 271A(1)(d) of the Act and a penalty of Rs.16,53,800/- was imposed under section 271A of the Act. Being aggrieved, the assessee went in appeal before the learned CIT(A) against the disallowances made and against the levy of penalty. The learned CIT(A), vide impugned appellate orders each dated 19/09/2024, dismissed both the appeals of the assessee. Now the assessee is in appeal before the Income Tax Appellate Tribunal. 3. During the course of hearing before the Income Tax Appellate Tribunal, none was present. In absence of any representation from assessee’s side, learned Departmental Representative was heard and materials available on record were perused. On perusal of records, it is seen that the assessment order as well as the impugned appellate orders of the learned CIT(A), were passed ex-parte qua the appellant assessee. Further, reasonable opportunity of being heard was not provided to the assessee. Learned Departmental Representative left the matter to the discretion of the Bench. In view of the foregoing, both the orders of learned CIT(A) are set aside and the issues in dispute are restored back to the file of the Assessing Officer with the direction to pass de novo assessment order in Printed from counselvise.com I.T.A. No.666 & 667/Lkw/2024 Assessment Year:2018-19 3 accordance with law on the specific issues after providing reasonable opportunity of being heard to the assessee. 4. In the result, both the appeals of the assessee are allowed for statistical purposes. (Order pronounced in the open court on 14/11/2025) Sd/. Sd/. (NIKHIL CHOUDHARY) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:14/11/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Lucknow Printed from counselvise.com "