Axis Agri Services Vs DCIT (ITAT Ahmedabad)
In Axis Agri Services Vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Ahmedabad set aside ex-parte orders issued by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Years 2017-18, 2018-19, and 2020-21. The case involved a dispute over the exemption of agricultural income under Section 10(1) of the Income Tax Act, 1961. The Assessing Officer (AO) had disallowed ₹3.3 crore, treating the income as business income. The assessee, a partnership firm engaged in hybrid seed production for Bt cotton, challenged the addition but failed to present substantial evidence before the CIT(A), leading to dismissal of their appeal. Due to technical issues, the assessee claimed they were unable to respond to notices, resulting in an ex-parte decision.
The ITAT, considering the reasonable causes cited for non-compliance, condoned a 28-day delay in filing the appeals. Noting that the CIT(A) relied solely on AO’s assessment without assessing the merits of the case, the tribunal directed a fresh adjudication, ensuring the assessee gets an opportunity to present its case. The matter was remanded to CIT(A) for reconsideration, with instructions to provide a fair hearing before deciding on the tax exemption claim. The appeals were allowed for statistical purposes.
