VEEKAYBUILDERS AND DEVELOPERS,ERNAKULAM V. ITO, NON CORP WARD-1(1), KOCHI

ITA 595/COCH/2025

AI Insights

The case involves Veekay Builders and Developers, a partnership firm, which did not file a return of income for the Assessment Year 2017-18. The Income Tax Department, based on available information, noted substantial expenditures by the firm on the purchase of heavy motor vehicles, specifically a JCB and a Tipper, amounting to Rs. 22,50,000 and Rs. 27,81,379 respectively. The Assessing Officer (AO) added an unexplained amount of Rs. 6,36,329 to the firm's income under section 69C of the Income Tax Act, 1961, due to discrepancies in the financed and actual amounts paid for these vehicles. The CIT(A) dismissed the firm's appeal ex parte for non-prosecution, leading to the current appeal before the Tribunal. The Tribunal found that the CIT(A) had not addressed the appeal on merits and thus remanded the case back for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782018 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 25-08-2025
• Other Referred Cases: PCIT vs. Premkumar Arjundas Luthra 279 CTR 614
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: BINISHA BABY
• Section: 147; 69C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 595/Coch/2025 Assessment Year: 2017-18 Veekay Builders and Developers .......... Appellant Neduvile Vakamokotti Hosue, Thrikkakara North Thrikkakara S.O. 682021, Ernakulam [PAN: AAMFV9490R] vs. ITO, Non Corporte Ward- 1(1), Kochi .......... Respondent Assessee by: Ms. Binisha Baby, Advocate Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 27.10.2025 Date of Pronouncement: 28.10.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 13.01.2025 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the assessee is a partnership firm. The assessee did not file return of income for AY 2017-18. As per the information available with the Department, the appellant had incurred substantial expenditure for purchase of Heavy Motor vehicles. During the course of assessment proceedings, the Assessing Officer (AO) found that the appellant had purchased JCB and Tipper for Rs. 22,50,000/- and Rs. 27,81,379/-, respectively. Printed from counselvise.com 2 ITA No. 595/Coch/2025 Veekay Builders and Developers The amount financed for the purchase of JCB was Rs. 18,95,050/- and Tipper Rs. 25,00,000/- and the amounts deposited by partners were issued for payment of installments against the vehicles loans. Thus, the difference of Rs. 3,54,950/- (22,50,000 – 18,95,050) for the purchase of JCB and Rs. 2,81,379/- (27,81,379 – 22,50,000) for the purchase of Tipper remained unexplained. Therefore, the AO added Rs. 6,36,329/- u/s. 69C of the Income Tax Act, 1961 (the Act) in the order passed u/s. 147 r.w.s. 144 of the Act dated 26.03.2022. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I heard the rival contentions and perused the material available on record. I find that the learned CIT(A) dismissed the appeal in limine for non prosecution. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position I am of Printed from counselvise.com 3 ITA No. 595/Coch/2025 Veekay Builders and Developers the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 28th October, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 28th October, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "