S M ASSOCIATES,TALOJA V. INCOME TAX OFFICER, PANVEL

ITA 1748/PUN/2025

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The case involves S. M. Associates, a partnership firm, which appealed against the order of the CIT(A)/NFAC for the assessment year 2018-19. The firm had declared nil income in its return, but the Assessing Officer added Rs.3,02,00,000 to the Gross Total Income, claiming it was unsubstantiated capital introduced by the partners. The CIT(A) dismissed the appeal due to the absence of the assessee, leading to the current appeal before the Tribunal. The Tribunal found that the assessee did not receive the notices from CIT(A), resulting in an ex-parte order, and thus decided to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780383 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 21-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHALE
• Assessee Lawyers: SHRIDHAR ACHARI
• Keywords: Corroborative evidences
• Section: 143(3); 142(1); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1748/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 S. M. Associates, Shop No.6, S.M. Plaza, Sector- 23, Taloja, Raigad- 410208. PAN : ADJFS7283H Vs. ITO, National e- Assessment Centre, Delhi. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 18.06.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2018-19. 2. The appellant has raised the following grounds of appeal :- “1. The A.O. has erred in law and on facts in making additions to Gross Total Income by Rs.3,02,00,000/- which Capital Contribution by partners to the Partnership firm. 2. The A.O. has erred in law and on facts in initiating penalty u/s.271(1)(c) and u/s.271AAC(1). 3. The order appealed against is illegal, invalid and void-ab- initio.” Assessee by : Shri Shridhar Achari Revenue by : Shri Bharat Andhale Date of hearing : 07.10.2025 Date of pronouncement : 09.10.2025 Printed from counselvise.com ITA No.1748/PUN/2025 2 3. Facts of the case, in brief, are that the assessee is a partnership firm and had filed its return of income on 23.10.2018 declaring Nil income. The case was selected for scrutiny and statutory notices u/s 143(2) and 142(1) of the IT Act were issued. The Assessing Officer found that capital to the tune of Rs.3,02,00,000/- was introduced during the period under consideration. The assessee claimed that above amount was contributed by partners of the firm. However, the assessee could not produce any supporting evidence with regard to introduction of above capital of Rs.3,02,00,000/- by the partners and therefore, the Assessing Officer completed the assessment u/s 143(3) of the IT Act by determining total income of Rs.3,02,00,000/- as against the income returned by the assessee at Rs.Nil. The above assessed income includes disallowance u/s 68 of Rs.3,02,00,000/-. 4. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. 5. It is this above order against which the assessee is in appeal before this Tribunal. 6. Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT(A)/NFAC is unjustified. Ld. Printed from counselvise.com ITA No.1748/PUN/2025 3 AR submitted that the notices of hearing issued by Ld. CIT(A)/NFAC were not received by the assessee which resulted in ex-parte order by Ld. CIT(A)/NFAC. Ld. AR further submitted that each and every details regarding capital contribution by partners are available with the assessee’s partnership firm and if one opportunity is provided to the assessee, he is in position to explain the capital contribution by the partners. 7. Ld. DR appearing from side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same. 8. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. It is the sole request of the assessee to set-aside the impugned order passed by Ld. CIT(A)/NFAC and to provide one more opportunity of hearing so that he can produce documents/evidences in support of its contentions. Considering the totality of the facts of the case and in the interest of justice, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh as per fact and law and after providing reasonable Printed from counselvise.com ITA No.1748/PUN/2025 4 opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and produce relevant documents/evidences in support of its contentions without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate order as per law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 09th day of October, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 09th October, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "