NIVIK INDUSTRIES PVT. LTD.,VADODARA V. INCOME TAX OFFICER, WARD 2(1)(1), VADODARA

ITA 141/AHD/2026

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Nivik Industries Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which had dismissed their appeal ex-parte and upheld the additions made by the Assessing Officer. The additions included a significant difference in declared and actual sale consideration and unexplained creditors under section 68 of the Income Tax Act. The Tribunal found that the assessee had been given multiple opportunities to present their case but failed to comply adequately. However, considering the circumstances, the Tribunal decided to remand the case for a de novo assessment, emphasizing the need for the assessee to provide all necessary documentation and comply with procedural requirements.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838870 (ITAT-AHMEDABAD)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 21-01-2026
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: HEMANT SUTHAR
• Keywords: Opportunity of being heard; Corroborative evidences; Unexplained cash credit
• Section: 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.141/Ahd/2026 (Assessment Year: 2022-23) Nivik Industries Pvt. Ltd., 9/10 Yashodhan Duplex, Opp Raneshwar Temple, Vasna Road, Vadodara-390015. [PAN :AAPCS9919 N] Vs. The Income Tax Officer, Ward 2(1)(1), Vadodara. (Appellant) .. (Respondent) Appellant by : Shri Hemant Suthar, AR Respondent by: Shri R P Rastogi, CIT. DR Date of Hearing 18.02.2026 Date of Pronouncement 19.02.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 05.12.2025 passed by the Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2022-23. 2. The assessee has raised the following grounds of appeal: 1. The Ld. CIT (Appeals), National Faceless Appeal Centre (NFAC), Delhi has grossly erred in law and in facts in dismissing the appeal ex-parte without affording reasonable opportunity of being heard to the appellant. The appeal of the appellant may kindly be restored to the file of the Ld. CIT (Appeals) and may please be directed to afford reasonable opportunity of being heard. Printed from counselvise.com ITA No. 141/Ahd/2026 Asst. Year : 2022-23 - 2– 2. The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O in making an addition of Rs 7.52.90 426/- being difference between the actual sale consideration of Rs. 16,22.90,426/- and the sale consideration declared in the Return of Income of Rs 8,70,00,000/- The addition of Rs. 7,52,90,426/- being bad in law and in facts is prayed to be deleted. 3. The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O. in making an addition of Rs 27,11,383/- treating the same as unexplained creditors u/s 68 of the Act, on the ground that the appellant has failed to prove the creditworthiness and genuineness of the creditors. The addition of Rs 27,11,383/-being bad in law and in facts is prayed to be deleted 4. The Ld. CIT(A), NFAC has erred in law and in facts in holding the action of the Ld. A.O. in making an addition of Rs 6,82.58,629/- treating the same as unexplained creditors u/s. 68 of the Act, on the ground that the appellant has failed to prove the creditworthiness and genuineness of the creditors The addition of Rs.6,82,58,629/- being bad in law and in facts is prayed to be deleted 5. Your appellant craves liberty to add, alter, amend substitute or withdraw any of the grounds of appeal hereinabove contained. 3. On perusal of the records, it is observed that the assessee was afforded several opportunities of hearing on 21.11.2024, 11.08.2026, 31.10.2025 and 13.11.2025 to furnish details, clarifications and explanations to substantiate the source of unexplained creditors under section 68 of the Act. However, despite being granted multiple opportunities, the assessee remained non-compliant, sought adjournments, and failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal of the assessee ex parte. We further observe that the assessee also failed to submit any details or supporting evidence to establish the source of unexplained creditors even before the Assessing Printed from counselvise.com ITA No. 141/Ahd/2026 Asst. Year : 2022-23 - 3– Officer. During the course of hearing before us, the Ld. Counsel for the assessee prayed that, given an opportunity, due compliance would be made and all necessary details, clarifications and explanations would be furnished before the revenue authorities. The Ld. Counsel for the assessee has voluntarily agreed to pay a cost of Rs. 10,000/- into the “Prime Minister’s Relief Fund”. The receipt thereof shall be submitted before the Jurisdictional Assessing Officer, who shall take the same on record before passing the order giving effect to this order of the Tribunal. Considering the totality of the facts and in the interest of justice, we deem it appropriate to remand the matter to the file of the Assessing Officer for conducting the assessment de novo. The assessee is directed to submit all relevant bank statements, documents and explanations before the Assessing Officer and to strictly comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 19.02.2026. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy)rue Copy) (True Copy) Ahmedabad; Dated 19.02.2026 MV Printed from counselvise.com ITA No. 141/Ahd/2026 Asst. Year : 2022-23 - 4– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "