RAJESH AGRAWAL,AKOLA V. INCOME-TAX OFFICER, WARD - 1, AKOLA

ITA 614/NAG/2025

AI Insights

The case involves an appeal by Rajesh Agrawal against the order of the CIT(A), which was initially dismissed due to non-compliance by the assessee on four occasions. The appeal pertains to the assessment year 2018-19, where the Income Tax Officer (ITO) had made an addition for unexplained investment, significantly increasing the assessed income. The assessee challenged both the merits of the assessment and the validity of the notice under section 148 and the re-assessment proceedings. The ITAT decided to remit the case back to the CIT(A) for a detailed examination of all raised issues, including the legal challenges regarding the notice and re-assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835213 (ITAT-NAGPUR)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 04-10-2025
• Other Referred Cases: CIT vs. B.N. Bhattacharjee & Ors. [1979] 10 CTR 354 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA
• Keywords: Set aside; Reasonable cause; Unexplained investment
• Section: 147; 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR (through virtual) BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A.No.614/NAG/2025 (Assessment Year : 2018-2019) Rajesh Agrawal, 103, Birla Ram Mandir Road, Maa Ambe Apartment, Satav Chowk, Akola, Maharashtra PAN : ADMPA 4806 H vs. ITO, Ward-1(1), Akola (Appellant) (Respondent) For Assessee : None For Revenue : Shri Surjit Kumar Saha, Sr.DR Date of Hearing : 03.02.2026 Date of Pronouncement : 10.02.2026 ORDER This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”], dated 11/09/2025 passed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of assessment order dated 19.03.2024 passed u/s. 147 r.w.s. 144B of the Act for the Assessment Year 2018-19 (A.Y.) 2. When the case called for, none appeared on behalf of the assessee. I, therefore, proceed to adjudicate the appeal exparte qua assessee with the assistance of Ld. Departmental Representative (DR) and the documents available on record. Printed from counselvise.com 2 ITA.No.614/NAG/2025 (Rajesh Agrawal) On perusal of the impugned order indicates that due to non- compliance by the assessee on four occasions, Ld.CIT(A) has dismissed the assessee’s appeal in limine without dealing with merits of the case. Even though, assessee has raised as many as 11 grounds of appeal, but since there is no finding of the Ld.CIT(A) on the issues raised by the assessee. 3. Ld. DR has no objection if the issues raised in the instant appeal are remitted back to the file of Ld.CIT(A) for necessary adjudication. 4. I have heard Ld.DR and perused the records placed before me. I observe that assessee is an individual and assessment proceedings u/s. 147 r.w.s. 144B of the Act have been carried out for A.Y. 2018-19 and against returned income of ₹3,78,420/-, Ld.AO has made the addition for unexplained investment at ₹ 27,23,167/- and assessed the income at ₹31,01,587/-. Before the Ld.CIT(A) assessee has raised the grounds on merits, but then due to non-compliance on four occasions on the dates mentioned at page No. 4 of the impugned order, the assessee’s appeal has been dismissed by the Ld.CIT(A) in limine placing reliance on the judgment of Hon'ble Apex Court in the case of CIT vs. B.N. Bhattacharjee & Ors. [1979] 10 CTR 354 (SC). In the appeal filed before this Tribunal, assessee along with merits of the case has also Printed from counselvise.com 3 ITA.No.614/NAG/2025 (Rajesh Agrawal) raised legal issues challenging the validity of notice u/s. 148 as well as validity of re-assessment proceedings. 5. However, considering the fact that these legal issues have been raised for the first time before this Tribunal and also since these were not raised before the Ld.CIT(A), I deem it appropriate to restore all the issues raised in the instant appeal to the file of Ld.CIT(A) for necessary adjudication and decide in accordance with law as contemplated u/s. 250(6) of the Act. Needless to mention that Ld.CIT(A) shall afford reasonable opportunity of hearing to the assessee and shall pass a speaking order. Assessee is also directed to remain vigilant and not to take adjournments unless otherwise required for reasonable cause and file all the details called for by the Ld.CIT(A). Thus, impugned order is hereby set aside and effective grounds of appeals raised by the assessee are allowed for statistical purposes 6. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 10.02.2026 Sd/- Sd/- [MANISH BORAD] ACCOUNTANT MEMBER Dated : 10th February, 2026 vr/- Printed from counselvise.com 4 ITA.No.614/NAG/2025 (Rajesh Agrawal) Copy to 1. The appellant 2. The respondent 3. The Pr.CIT, Nagpur concerned. 4. D.R. ITAT, SMC Bench, Nagpur. 5. Guard File. By Order //True Copy // Senior Private Secretary ITAT, Nagpur Printed from counselvise.com "