NATURAL HERBAL PRODUCTS PLOT NO 38-B SICOP KATHUA ,KATHUA V. INCOME TAX OFFICER WARD KATHUA HERRIAN PUTTAN KATHUA , KATHUA

ITA 432/ASR/2025

AI Insights

The case involves Natural Herbal Products, the appellant, contesting an assessment order for the Assessment Year 2013-14, which added an unexplained investment of Rs. 50 Lacs to their income. This amount was allegedly paid to M/s Om Trading Co. through the appellant's bank account. The appellant did not file a return of income nor comply during the initial assessment proceedings, leading to a best judgment assessment under sections 147 and 144 of the Income Tax Act by the Assessing Officer (AO). The Commissioner of Income Tax (Appeals) upheld this assessment due to non-compliance. The appellant, represented by Advocate P.N. Arora, argued that the transaction in question did not occur through their bank account, which was contested by the Senior Departmental Representative, Charan Dass. The Tribunal decided to give the appellant another opportunity to present their case, emphasizing the need for a fair hearing.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834432 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS LD.
• Assessee Lawyers: P.N. ARORA LD
• Section: 147; 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AMRITSAR VIRTUAL HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND SHRI UDAYAN DASGUPTA, JM आयकरअपीलसं. / ITA No.432/ASR/2025 (िनधाŊरणवषŊ / Assessment Year: 2013-14) Natural Herbal Products Plot No. 38-B SICOP PE Kathua C/o Shri P N Arora (Advocate) 3rd Floor, SRK Mall 14- Kennedy Avenue Mall Road, Amritsar Punjab - 143001 बनाम/ Vs. ITO Ward Herrian Pattan, Kathua J & K - 184101 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFFN-8691-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. P.N. Arora (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 03-02-2026 घोषणाकीतारीख /Date of Pronouncement : 04-02-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013- 14 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 25-03-2025 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 147 r.w.s. 144 on 30-03- 2022. In the assessment order, Ld. AO made addition of unexplained Printed from counselvise.com 2 investment for Rs.50 Lacs. The same represent amount paid by the assessee to M/s Om Trading Co. (prop. Shri Sanjeev Kumar Jain) through bank Account of the assessee. The assessee did not file the return of income and also remained non-compliant during assessment proceedings. The Ld. CIT(A) confirmed the same for want of any compliance from the assessee. Aggrieved, the assessee is in further appeal before us. 2. The Ld. AR stated that the assessee is in a position to substantiate the fact that no such transaction has happened through the bank account of the assessee. The bank account as mentioned by Ld. AO does not belong to the assessee. Accordingly, another opportunity of hearing has been sought which has been opposed by Ld. Sr. DR. 3. Considering the pleadings of Ld. AR, we accept the prayer of Ld. AR and restore the appeal back to the file of Ld. CIT(A) for fresh consideration with a direction to the assessee to plead and prove its case forthwith. 4. The appeal stand allowed for statistical purposes. Order pronounced on 04th February, 2026. -Sd- -Sd- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 04-02-2026 Printed from counselvise.com 3 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AMRITSAR Printed from counselvise.com "