Raisoni Bagrecha Diamonds Pvt. Ltd. Vs PNE-C-(25)(1) (ITAT Pune)
Natural Justice Over Technicalities- Defective Form 35 Is No Death Knell: Appeals Restored for Merits
The Pune Bench of the ITAT in Raisoni Bagrecha Diamonds Pvt. Ltd. vs. DCIT [ITA Nos. 2548 & 2550/PUN/2025; AYs 2015-16 & 2016-17; order dt. 01-01-2026] set aside the orders of the CIT(A)/NFAC and restored the matters for fresh adjudication on merits. The appeals arose from ex-parte reassessment orders where additions were made u/s 69 on account of alleged bogus liabilities, undisclosed purchases and suppressed sales, mainly due to non-compliance with notices.
Before the Tribunal, the Assessee explained that non-compliance was not deliberate but due to extraordinary circumstances including arrest and investigation of partners and the erstwhile tax consultant. The Tribunal noted that the CIT(A)/NFAC dismissed the appeals on hyper-technical grounds, particularly defects in Form 35 and rejection of additional evidence u/r 46A, without deciding issues on merits. Considering principles of natural justice and substantial justice, the ITAT held that the Assessee deserved one more opportunity. Accordingly, the impugned orders were set aside and the matters remanded to the CIT(A)/NFAC with a direction to adjudicate afresh on merits after granting reasonable opportunity, with a caution to the Assessee to fully comply. Appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
