PRAVEEN AGRAWAL ,INDORE V. DCIT 4(1) INDORE, INDORE

ITA 651/IND/2024

AI Insights

The case involves Praveen Agrawal, the appellant, who filed an appeal against the order of the CIT(A) concerning the assessment year 2018-19. The appeal was initially against the assessment order which included additions under Section 68 for unexplained credits and disallowances of interest under Section 57, among other issues. The CIT(A) upheld these additions, leading to the current appeal. The Tribunal found that the CIT(A) had not adequately examined the merits of the case and that the assessee had not been given a proper opportunity to present his case, partly due to issues with the electronic portal used for submissions. Consequently, the Tribunal remanded the case for a de novo hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312741 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEALSOSTATEDABOUTISSUESFACEDBYTHEM; SHRIRAM KUMAR YADAV
• Assessee Lawyers: RUCHIRA SINGHAL
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit; Principle of natural justice; TDS
• Section: 144; 143(3); 68; 133(6)

Judgement Text

"Page 1 of 6 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI PARESH M JOSHI, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA No.651/Ind/2024 (AY: 2018-19) Praveen Agrawal, 121 New Sabzi Mandi, Indore (PAN: AFEPA6503P) बनाम/ Vs. DCIT 4(1), Indore (Appellant) (Revenue) Assessee by Ms. Ruchira Singhal, AR Revenue by Shri Ram Kumar Yadav, CIT-DR Date of Hearing 22.04.2025 Date of Pronouncement 29.04.2025 आदेश/ O R D E R Per Paresh M Joshi, J.M.: This is an appeal filed by the assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the “Act” for sake of brevity) before this Tribunal as and by way of Second appeal under the Act. The assessee is aggrieved by the order bearing Number ITBA/NFAC/S/250/2024-25/1067865581(1) dated 22.08.2024 passed by Ld. CIT(A) u/s 250 of the Act which is hereinafter referred to as the “Impugned order”. The relevant Assessment Year is 2018-19 and the corresponding previous year period is from 01.04.2017 to 31.03.2018. Praveen Agrawal ITA No. 651/Ind/2024 - A.Y.2018-19 Page 2 of 6 2. FACTUAL MATRIX 2.1 That the case of the assessee was selected by the Income Tax Department for limited scrutiny assessment under e- assessment scheme 2019 on the following grounds:- Sr.No. Issues (i) Deductions from income from other sources (ii) Default in TDS & Disallowance for such default (iii) Unsecured Loans 2.2 That as and by way of an assessment order bearing No.ITBA/AST/S/143(3)/2021-22/1035802484(1) dated 22.09. 2021 the total income of the assessee was computed at Rs.2,20,33,310/- u/s 143(3) r.w.s. 144B of the Act, which is hereinafter referred to as the “impugned assessment order”. 2.3 That the assessee being aggrieved by the aforesaid “impugned assessment order” prefers first appeal u/s 246A of the Act before Ld. CIT(A) who by the “impugned order” has dismissed the 1st appeal of the assessee on the grounds specified therein. 2.4 That the assessee being aggrieved by the “impugned order” has filed instant second appeal before us and has raised following Praveen Agrawal ITA No. 651/Ind/2024 - A.Y.2018-19 Page 3 of 6 grounds of appeal against the “impugned order” which are as under:- “1. That the Learned CIT(A) erred in confirming the addition made u/s 68 as alleged unexplained credit of Rs. 73,32,406/- which also include interest of Rs. 31,02,406/-on account of loans taken from some lenders. That on the on the facts and in the circumstances of the case the addition made is wrong and bad in law and is prayed to be deleted. 2. That the Learned CIT(A) erred in confirming the addition of Rs. 1,37,36,030/- made u/s 68 qua deduction of interest claimed u/s 57 of the Income Tax Act, 1961. That on the on the facts and in the circumstances of the case the addition made is wrong and bad in law and is prayed to be deleted and the interest claimed u/s 57 is prayed to be allowed. 3. That the Learned CIT(A) erred in upholding the action of the AO of invoking the provisions of section 115BBE in respect of both the above additions. That on the facts and in the circumstances of the case the provision of section 115BBE are not applicable in this case. 4. That on the facts and in the circumstances of the case and in law the Draft assessment order passed u/s 143(3) r.w.s. 144B dated 19.04.2021 having been issued without any Document Identification number (DIN) and without Digital Signature, is nonest and bad in law rendering the assessment order passed u/s 143(3) r.w.s. 144B dated 22.09.2021 also bad in law. 5. That on the facts and in the circumstances of the case fresh enquiries u/s 133(6) having been conducted by the Learned AO after issuance of the draft assessment order dated 19.04.2021, passing of the final assessment order u/s 143(3) r.w.s. 144B dated 22.09.2021 without issuing a fresh SCN confronting the appellant with the results of such enquiries is wrong and bad in law. 6. That the Learned CIT(A) grossly erred in passing the appellate order in undue haste without affording adequate opportunity of being heard, which on the facts and in the circumstances of the case is wrong and bad in law. Praveen Agrawal ITA No. 651/Ind/2024 - A.Y.2018-19 Page 4 of 6 7. The appellant craves leave to add, to alter, amend, modify, substitute, delete and / or rescind all or any of the grounds of appeal on or before final hearing, if necessity so arises.” 3. Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 22.04.2025 when Ld. AR for and on behalf of the assessee appeared before us and interalia stated that the “impugned order” is illegal, bad in law and not proper. It is in violation of the principles of natural justice. Thus in law the “Impugned Order” deserves to be set aside. It was emphatically contended that adequate opportunity was not given by the Ld. CIT(A) and hence there is denial of principles of natural justice. It was also submitted that if one more opportunity is provided to them they would avail the same and would satisfy the Ld. CIT(A) on merits. The Ld. DR on and behalf of the Revenue conquered with the view of Ld. AR that revenue has no objection if the matter is remanded to Ld. CIT(A) to pass a fresh order on denovo basis. The Ld. AR for assessee also stated about issues faced by them with regard to portal. The assessee’s do not see portal on day to day basis, some time documents do not open up so on and so forth further impugned order is not on merits as per law. Praveen Agrawal ITA No. 651/Ind/2024 - A.Y.2018-19 Page 5 of 6 4. Observations,findings & conclusions. 4.1 We now have to decide the legality, validity and the proprietary of the “Impugned Order” basis records of the case and rival contentions canvassed before us. 4.2 We have carefully perused the records of the case. 4.3 We basis records of the case and after hearing and upon examining the contentions are of the considered opinion and view that in the “impugned order” has not just not examined the merits of the case as contemplated by law by virtue of provisions contained u/s 250(6) of the Act. Further Ld. CIT(A) enjoys powers which are co-terminus with that of Ld. A.O. Further no effective opportunity of hearing was afforded to the assessee. Simultaneously assessee too had several issues with portal as stated (supra). Under these circumstances we set aside the “impugned order” and remand the case back to the file of CIT(A) to pass a fresh order on merits of the case on denovo basis. The fresh order should be reasoned and speaking order on merits of additions to be made and/or disallowance as the case may be. The assessee to be given adequate opportunity of hearing to present case. The assessee is simultaneously directed to Praveen Agrawal ITA No. 651/Ind/2024 - A.Y.2018-19 Page 6 of 6 cooperate with the Income Tax Department and to present all material in a manner known to law. The assessee to note that even the impugned assessment order was u/s 144 of the Act. This tribunal therefore desires meritorious disposal of case but according to law. 5. Order 5.1 The “impugned order” is set aside as and by way of remand back to the file of CIT(A) on denova basis. 5.2 Appeal of the assessee is allowed for statistical purpose. Order pronounced in open court on 29.04.2025. Sd/- Sd/- (NARENDRA PRASAD SINHA) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक/ Dated : 29/04/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "