SHARWAN KUMAR DARUKA,AMARPUR, BANKA V. CIT(A), PATNA

ITA 252/PAT/2025

AI Insights

The case involves two appeals filed by Sharwan Kumar Daruka against the orders of the Commissioner of Income Tax (Appeals), Patna, for the Assessment Years 2016-17 and 2017-18. The appeals were consolidated due to the identical issues involved, which arose from assessment orders passed under section 153C read with section 144 of the Income Tax Act. The primary contention in the appeals was the ex parte nature of the CIT(A)'s decision, which was claimed to be passed without adjudicating the issues on merits. The Tribunal found that the CIT(A) had dismissed the appeals due to non-prosecution without examining the issues on merits, which was contrary to the provisions of law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777171 (ITAT-PATNA)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2025
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 21-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA (VIRTUAL HEARING AT KOLKATA SHRI SONJOY SARMA, JUDICIAL MEMBER SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No. 252/PAT/2025 (Assessment Year 2016-17) & I.T.A. No. 253/PAT/2025 (Assessment Year 2017-18) Sharwan Kumar Daruka, Marwari Tola, Amarpur, Banka, Bhagalpur (Bihar)- 813101 [PAN: AEWPD9770L] ..…...…………….... Appellant vs. Commissioner of Income Tax (Appeals), Patna, Dak Banglo Chowk, Patna-3, Patna-800001 ..…...…………….... Respondent Appearances by: Assessee represented by : Shri Pankaj Kumar, AR Department represented by : Shri Rajat Datta, CIT-DR Date of concluding the hearing : 16.09.2025 Date of pronouncing the order : 18.09.2025 O R D E R PER SONJOY SARMA, JUDICIAL MEMBER Both these appeals, being ITA No. 252/Patna/2025 for Assessment Year 2016–17 and ITA No. 253/Patna/2025 for Assessment Year 2017–18, are filed by the same assessee against two separate orders of the learned CIT(A), both are dated 26.03.2025. 2. Since the issues involved in both the appeals are identical, arising out of assessment orders passed under section 153C read with section 144 of the Act in the case of the same assessee, except for variation in figures Printed from counselvise.com 2 ITA Nos. 252 & 253/Pat/2025 Sharwan Kumar Daruka and assessment years, both appeals were heard together and are being disposed of by this consolidated order. 3. For the sake of convenience, we first take up ITA No. 252/Patna/2025 for A.Y. 2016–17 as the lead case, and our findings therein shall mutatis mutandis apply to ITA No. 253/Patna/2025 for A.Y. 2017–18. Brief facts of the Case are that the Assessing Officer passed assessment order on 10.12.2019 under section 153C read with sections 153A/144 of the Act. In the said order, certain additions were made, including ₹56,732/- and₹1,00,480/-on account of unexplained credits in savings bank account, thereby determining total income of the assessee at ₹ 3,92,972/- for the AY 2016-17. 4. Aggrieved, the assessee preferred appeal before the learned CIT(A). However, the learned CIT(A) dismissed the appeal due to non-prosecution, thereby sustaining the order of the Assessing Officer. 5. The assessee has now preferred appeal before this Tribunal, raising multiple grounds. The primary contention is that the order of the learned CIT(A) is ex parte and passed without adjudicating the issues on merits. Therefore, another opportunity should be given to the assessee to substantiate his claim. 6. On the other hand, the learned DR supported the order of the learned CIT(A) and submitted that the assessee repeatedly failed to appear despite service of notices, and hence the CIT(A) was justified in dismissing the appeal. 7. We have considered the rival submissions and perused the record. It is evident that the learned CIT(A) dismissed the appeal ex parte, without Printed from counselvise.com 3 ITA Nos. 252 & 253/Pat/2025 Sharwan Kumar Daruka examining the issues raised on merits. In our considered view, such an approach is contrary to the provisions of law. The first appellate authority is duty-bound to adjudicate the grounds of appeal on merits, even in case of non-appearance by the assessee. 8. Accordingly, in the interest of justice and fair play, we set aside the impugned order of the learned CIT(A) and restore the matter to his file with a direction to decide the appeal afresh on merits, after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to appear and cooperate in the appellate proceedings. 9. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on 18.09.2025 Sd/- Sd/- (Rakesh Mishra) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 18.09.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Sr. Private Secretary/Assistant Registrar, Patna Bench Printed from counselvise.com "