VIKRAMKUMAR,CHENNAI V. DCIT, CHENNNAI

ITA 569/CHNY/2025

AI Insights

The case involves Vikram Kumar, an individual engaged in the business of stainless steel scrap under the name 'Shri Ram Enterprises', who appealed against the order of the Learned Commissioner of Income Tax (Appeals), Delhi. The appeal arose from an assessment order made by the Assessing Officer under sections 143(3) read with section 144B of the Income-tax Act, 1961, which added a profit on bogus purchases amounting to Rs. 1,14,03,831 to the assessee's income. The CIT(A) had previously upheld this addition in an ex-parte order due to non-compliance with notices by the assessee. The Tribunal found that the principles of natural justice warranted another opportunity for the assessee to present his case, leading to the decision to remit the matter back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712230 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.T.KRISHNAMOORTHY
• Assessee Lawyers: PRADEEP KUMAR; C.A
• Keywords: Bogus purchase; Principle of natural justice; Bogus
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.569/Chny/2025 िनधा9रण वष9 /Assessment Year: 2021-22 Vikram Kumar, 15, Lakshmi Nagar Extension, Vadaperumbakkam, Chennai – 600 060. Vs. The Dy. Commissioner of Income Tax, Non Corporate Circle-6(1), Chennai. [PAN: BJOPK 1906R] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri Pradeep Kumar, C.A GHथ की ओर से /Respondent by : Shri A.T. Krishnamoorthy, JCIT सुनवाई की तारीख/Date of Hearing : 26.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2021-22 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 29.08.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 27.12.2022. Printed from counselvise.com ITA No.569/Chny/2025 Vikramkumar :- 2 -: 2. There is a delay of 118 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The assessee is an individual and engaged in the business of Stainless steel scrap under the name and style Shri Ram Enterprises. The assessee has filed his return of income declaring total income of Rs.4,98,220/-. The A.O, in the assessment order has made addition on account of profit on bogus purchases of Rs. 1,14,03,831/-. Aggrieved by the addition, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) issued three notices during the appellate proceedings, which remained noncomplied with, and therefore passed an ex-parte order upholding the assessment order. 4. The Learned Authorized Representative (Ld. A.R.) of the assessee submitted that the assessee could not respond to the notices as the accountant responsible for filing the appeal failed to upload necessary documents and subsequently left the organization. The Ld. A.R. Printed from counselvise.com ITA No.569/Chny/2025 Vikramkumar :- 3 -: therefore requested that one more opportunity be granted to the assessee to substantiate his case. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The A.O in the assessment order has observed that the assessee has not produced stock register, date of purchase, payment and bank details etc., and concluded that the assessee has made bogus purchases to the tune of Rs. 6,33,54,620/-. The A.O accordingly has made addition of 18% of the bogus purchases in the income. The Ld. CIT(A) has dismissed the appeal without any submission from the assessee. We are of the considered opinion that, in view of the principles of natural justice, the assessee be provided another opportunity to present his case before the Ld. CIT(A). Accordingly, we remit the matter back to the file of the Ld. CIT(A) for denovo adjudication. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.569/Chny/2025 Vikramkumar :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of July, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 30th July, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF Printed from counselvise.com "