VINOD KUMAR VERMA,CHHINDWARA V. INCOME TAX OFFICER WARD 1, CHHINDWARA

ITA 19/JAB/2025

AI Insights

This case involves an appeal by Vinod Kumar Verma against the order of the CIT(A)/NFAC, which upheld additions and penalties imposed by the Assessing Officer for the assessment year 2018-19. The primary issues in the appeal included the erroneous confirmation of an addition under section 69A, non-consideration of submitted evidence, and unjustified confirmation of penalties under sections 271AAC(1) and 272A(1)(d). The assessee contended that the lower authorities dismissed the appeal ex-parte without adequate opportunity for representation and failed to consider the financial documents provided. The Departmental Representative supported the lower authorities' decisions, arguing that the assessee did not furnish relevant evidence. The Tribunal found that the CIT(A) had not addressed the merits of the case and thus remanded the matter back to the CIT(A) for a comprehensive review.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633642 (ITAT-JABALPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAWAN KUMAR MEENA
• Assessee Lawyers: SUMIT AHUJA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH “DB”, JABALPUR BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI, NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No. 19/JAB/2025 Assessment Year: 2018-19 Vinod Kumar Verma Ward No. 11, Gandhi Moholla, Parasia Chhindwara, Madhya Pradesh-480441. v. Income Tax Officer, Ward-1, Chhindwara Aayakar Bhawan, Nagpur Road, Near Danielson College, Chhindwara, Madhya Pradesh-480001. PAN:AMBPV0901G (Appellant) (Respondent) Appellant by: Shri Sumit Ahuja, CA Respondent by: Shri Shrawan Kumar Meena,CIT(DR) Date of hearing: 21 05 2025 Date of pronouncement: 11 06 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 27.11.2024 pertaining to the assessment year 2018-19. The assessee has raised the following grounds of appeal: - “1. Erroneous Confirmation of Addition under section 69A: The CIT(A) erred in upholding the addition of Rs.3,85,54,560/- made by the AO, ignoring financial documents submitted with Form No.35. 2. Non- Consideration of submitted evidence: The CIT(A) failed to consider financial documents, violating principles of natural justice. 3. Failure to provide adequate opportunity of being heard: No communication of notices was received denying a fair hearing. 4. Unjustified confirmation of penalty under section 271AAC(1): The penalty of Rs.23,13,274 was wrongly upheld despite genuine reasons. 5. Improper confirmation of penalty under section 272A(1)(d): The penalty of Rs.10,000 was imposed despite valid medical reasons for non- compliance. ITA No.19/JAB/2025 Page 2 of 3 6. Violation of Principles of natural justice: The CIT(A) passed the order without fair opportunity for representation.” 2. At the outset, the Ld. Counsel for the assessee contended that both the lower authorities have dismissed the appeal ex- parte to the assessee without giving adequate opportunities of being heard to the assessee. It is further contended that the submissions of the assessee were not considered. He further urged that an opportunity may kindly be granted to the assessee at least for making effective representation before the First Appellate Authority. 3. On the other hand, the Ld. Departmental Representative (DR) opposed the submissions and supported the orders of the lower authorities. He contended that the assessee failed to furnish the relevant evidences in support of its claim. Therefore, the authorities below were justified in making the additions and dismissing the appeal of the assessee. 4. Heard, the Ld. Representatives of the parties and perused the material available on record. It is seen that the Ld. CIT(A) has dismissed the appeal on account of non-prosecution by the assessee without adverting to the grounds on merits of the case. It is well settled that the First Appellate Authority should adjudicate the issues on merit that related to the impugned additions made by the Assessing Officer. Under these facts, we deem it fit and proper and to sub-serve the interest of principles of natural justice hereby set aside the impugned order and restore the grounds of the appeal to the Ld. CIT(A) for deciding the grounds afresh and by giving clear finding on the grounds raised by the assessee by way of speaking order. Needless to say that the assessee would provide all the information which is relevant and necessary for adjudication of grounds of appeal. Grounds raised in this appeal are allowed for statistical purpose. ITA No.19/JAB/2025 Page 3 of 3 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 11/06/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 11/06/2025 Vijay Pal Singh, (Sr. PS) Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, Jabalpur 6. Guard File By order // True Copy// Assistant Registrar ITAT, Jabalpur "