OLYMPIA FITNESS PRIVATE LIMITED,DELHI V. INCOME TAX OFFICER, DELHI

ITA 6987/DEL/2025

AI Insights

The case involves Olympia Fitness Private Limited appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed an addition of Rs.36,70,229 to the assessee's income on account of undisclosed turnover under section 68 of the Income Tax Act. The assessee contended that the NFAC passed the order without a proper hearing and failed to consider the merits of the case adequately. The Tribunal noted that although the assessee had sought adjournments on previous occasions, the final non-appearance was beyond their control, leading to an ex-parte decision by the NFAC. The Tribunal found merit in the assessee's request for a further opportunity to present their case and thus allowed the appeal for statistical purposes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792333 (ITAT-DELHI)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 31-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDER KUMAR SINGH
• Assessee Lawyers: MANSHI JAIN
• Keywords: Opportunity of being heard; Principle of natural justice; Assessment record
• Section: 68; 133A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “SMC”, NEW DEALHI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 6987/DEL/2025 (Assessment Year: 2017-18) (Physical hearing) Olympia Fitness Private Limited , S-569, 2nd Floor, Greater Kailash-II, New Delhi-110048 PAN: AAACO 8227 G Vs Income Tax Officer, Ward-19(1), New Delhi-110002 Appellant / Assessee Respondent / Revenue Assessee by Ms. Manshi Jain, Adv. Shri Tanishq Ahuja, Adv. & Shri Sidharth Bajaj, Adv. Revenue by Shri Virender Kumar Singh, Sr. DR Date of institution of appeal 31.10.2025 Date of hearing 01.12.2025 Date of pronouncement 01.12.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of learned CIT(A)/National Faceless Appeal Centre, Delhi dated 21.08.2025 for assessment year (AY) 2017-18. The assessee has raised following grounds of appeal: “1. On the facts and circumstances of the case, the order passed by National Faceless Appeal Centre (NFAC) is bad both in the eye of law and on facts. 2. i) On the facts and circumstances of the case, the NFAC has erred both on facts and in law in passing the order without giving assessee an opportunity of being heard in violation of principle of natural justice. ii) That the non appearance on the last date of hearing before the NFAC was for the reasons beyond the control of the assessee. 3. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in passing the order without giving a proper finding on the merits of the case. Printed from counselvise.com ITA No. 6987/Mum/2025 Olympia Fitness Private Limited 2 4. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in confirming the addition of Rs.36,70,229/- made by AO on account of undisclosed turnover u/s 68 of the Income Tax Act. 5. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in confirming the addition made u/s 68, ignoring that the said section is not applicable in the facts and circumstances of the present case.” 2. Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (AR) of the assessee submits that the ld. CIT(A) passed ex-parte order without giving reasonable and sufficient opportunity. The ld. AR of the assessee fairly submits that hearing was fixed by the ld. CIT(A) on four occasion out of which the assessee sought adjournment on three occasions, such fact is recorded in para-4 in sub-para- 4.1 of the order. However, on fourth occasion, the assessee could not file adjournment application, resultantly, the ld. CIT(A) passed the ex-parte order. The ld. AR of the assessee submits that one more opportunity may be given to the assessee to contest the case on merit and the matter may be restored back to the file of the ld. CIT(A). 3. On the other hand, the ld. Senior Departmental Representative (Sr DR) for the Revenue submits that more than reasonable opportunity was allowed to the assessee. The assessee failed to avail such opportunities. Thus, the assessee does not deserve any further leniency for seeking restoration of case by ld. CIT(A) afresh. 4. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. I find that during the assessment, the assessing officer made addition under section 68 of the Act Printed from counselvise.com ITA No. 6987/Mum/2025 Olympia Fitness Private Limited 3 on the basis of statement recorded and the material impounded during survey action carried out under section 133A of the Act on the premises of the assessee. Before the ld. CIT(A), the assessee in its adjournment application made prayer that they are seeking inspection of impugned material which was the basis of addition under section 68, copy of such application for inspection of assessment record was also furnished along with adjournment application. Considering the overall facts and circumstances of the case, I am of the view that the assessee deserves one more opportunity to contest its case before the ld. CIT(A). Hence, the grounds of appeal raised by the assessee are allowed for statistical purpose. 5. In the result, appeal of the assessee is allowed for statistical purpose. Order was pronounced in the open Court on 01st December, 2025 at time of hearing. Sd/- PAWAN SINGH JUDICIAL MEMBER Delhi, Dated: 01.12.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, New Delhi; and (5) Guard file. By Order Assistant Registrar ITAT, New Delhi Printed from counselvise.com "