VATSALABAI KARBHARI DEORE,NASHIK V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1, NASHIK

ITA 2056/PUN/2025

AI Insights

The case involves Vatsalabai Karbhari Deore, who operates a poultry farm and filed an appeal against the order of the National Faceless Appeal Centre, Delhi, which was based on an assessment order passed under section 144 of the Income Tax Act, 1961. The primary contention was regarding the application of an 8% net profit rate by the Assessing Officer, which the assessee argued was excessive compared to the 7.35% gross profit rate declared. Additionally, the assessee contested the disallowance of interest expenditure amounting to Rs.57,96,647 incurred on business loans. The Tribunal noted the absence of necessary details from the assessee during the initial assessments and appeals, leading to the decision to remit the case back to the JAO for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782634 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 31-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHALE
• Assessee Lawyers: SANKET JOSHI
• Keywords: Set aside; Reasonable cause
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2056/PUN/2025 Assessment Year : 2014-15 Vatsalabai karbhari Deore, Ganga Apartment, Near Bhora Par, Lokmanya Nagar, Gangapur road, Nashik 422002 Maharashtra PAN : AMCPD1959P Vs. ACIT, Circle-1, Nashik Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of assessee pertaining to A.Y. 2014-15 is against the order dated 30.06.2025 of the National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 emanating from Assessment Order dated 16.12.2016 passed u/s.144 of the Act. 2. At the outset, ld. Counsel for the assessee requested for restoring the issues to the file of ld. Jurisdictional Assessing Officer for denovo adjudication on the ground that assessee failed to make any compliance before ld. AO and best judgment assessment has been framed u/s.144 of the Act. He also submitted that against the gross profit rate of 7.35% declared by the assessee, ld.CIT(A) has affirmed the action of Appellant by : Shri Sanket Joshi (virtual) Respondent by : Shri Bharat Andhale Date of hearing : 06.10.2025 Date of pronouncement : 27.10.2025 Printed from counselvise.com ITA No.2056/PUN/2025 Vatsalabai Karbhari Deore 2 the AO applying 8% net profit rate which is excessive. He also submitted that apart from estimating the profits ld. AO has also disallowed the interest expenditure of Rs.57,96,647/- incurred by the assessee on the loans raised for the business purposes. However, for want of necessary details, ld.CIT(A) has affirmed the action of the AO. 3. On the other hand ld. Sr. DR did not controvert the contentions made by ld. Counsel for the assessee of restoring the issues to the file of ld. JAO for fresh examination of the issues. 4. We have heard the rival contentions and perused the record placed before us. We observe that the assessee is an individual and carrying on the business of Poultry farm under the name of M/s.Akash Poultry Farm. Income of Rs.27,62,130/- declared in the e-return filed for A.Y. 2014-15 on 26.11.2014. After the case being selected for scrutiny through CASS followed by validly serving of statutory notices u/s.143(2) and 142(1) of the Act ld. AO carried out the assessment proceedings. However, in absence of any response from the assessee and non-submission of any details, ld. AO passed best judgment assessment making two additions firstly by disallowing interest expenses at Rs.57,96,647/- and secondly estimating the net profit @8% on the total turnover after allowing 7.35% gross profit declared by the assessee, and made addition of Rs.21,62,501/-. Against the additions, assessee preferred appeal before ld.CIT(A) but failed to succeed on the impugned additions. Printed from counselvise.com ITA No.2056/PUN/2025 Vatsalabai Karbhari Deore 3 5. We observe that the assessee has been claiming that its books of accounts are duly audited and the gross profit rate declared during the year is consistent to the gross profit declared in the preceding years and rather it is on higher side and therefore by ld. Counsel for the assessee submitted that 8% net profit rate adopted by the Ld. AO to be on a very higher side. It is also submitted that genuine interest expenditure has not been allowed. Considering the fact that assessee failed to place necessary details before the AO and ld.CIT(A) and under the given facts and circumstances, we deem it proper to remit back all the issues raised in the instant appeal to the file of ld. JAO for denovo adjudication. Needless to mention that in the set aside proceedings Ld. JAO shall afford reasonable opportunity to the assessee to file necessary details. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 27th day of October, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 27th October, 2025. Satish Printed from counselvise.com ITA No.2056/PUN/2025 Vatsalabai Karbhari Deore 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "