VISHAL ASSOCIATES,KANPUR V. THE INCOME TAX OFFICER, WARD-1(2)(4), KANPUR

ITA 641/LKW/2025

AI Insights

The case involves Vishal Associates, the appellant, who filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2018-19. The CIT(A) had dismissed the appellant's appeal for non-prosecution without addressing the merits of the case. The appellant had initially declared an income of Rs. 94,460, which was significantly increased by the Assessing Officer to Rs. 29,07,370, including an addition of Rs. 28,09,711 under section 40A(3) of the Income Tax Act. The Tribunal found that the CIT(A) had not fulfilled the statutory duty to pass a speaking order on the various grounds of appeal filed by the assessee, leading to the decision to remand the case back for a thorough examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785106 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 08-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: R.K. AGARWAL
• Assessee Lawyers: SWARAN SINGH
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3); 40A(3)

Judgement Text

"I.T.A. No.641/Lkw/2025 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “SMC”, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.641/Lkw/2025 Assessment year:2018-19 Vishal Associates 117/K-13, Anand Tower, Sarvodaya Nagar, Kanpur. PAN:AAPFV4085M Vs. Income Tax Officer, Ward-1(2)(4), Kanpur. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.641/Lkw/2025 has been filed by the assessee for assessment year 2018-19 against impugned appellate order dated 26/08/2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1080008678(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) The facts of the case, in brief, are that in this case, the assessee filed its return of income on 31/10/2018 declaring total income at Rs.94,460/-. The Assessing Officer completed the assessment and passed assessment order under section 143(3) read with section 143(3A)/143(3B) of the Act and determined the total income of the assessee at Rs.29,07,370/- and made addition of Rs.28,09,711/- under section 40A(3) of the Act. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A), who has dismissed the appeal of the assessee for non-prosecution. Appellant by Shri Swaran Singh, C.A. Respondent by Shri R. K. Agarwal, CIT (D.R.) Printed from counselvise.com I.T.A. No.641/Lkw/2025 Assessment Year:2018-19 2 Being further aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal. (C) Both sides have been heard. Materials on record have been perused. On perusal of records, it is seen that the learned CIT(A) has dismissed the appeal of the assessee for non-prosecution and has not decided the appeal of the assessee on the merits and has not passed a speaking order. Under section 250(6) of the I. T. Act, the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. The learned A.R. for the assessee and learned CIT, D.R., both were in agreement at the time of hearing, that the matter in dispute may be restored back to the learned CIT(A) for adjudication of assessee’s grounds of appeal on merits through a speaking order. Having regard to the same, the impugned appellate order dated 26/08/2025 of learned CIT(A) is set aside and issues in dispute are restored back to the file of learned CIT(A) with the direction to pass de novo order in accordance with law after providing reasonable opportunity of being heard to the assessee; in conscious compliance of section 250(6) of the I. T. Act. (D) In the result, the appeal is allowed for statistical purposes. (Order pronounced in the open court on 13/11/2025) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:13/11/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T. Printed from counselvise.com "