Alankar Real Estates Pvt. Ltd. Vs DCIT (ITAT Nagpur)
CIT(A) Erred in Dismissing Appeal & Adjudicating Merits Without Opportunity – Ex-Parte Loan Addition Sent Back for Fresh Hearing
Assessee filed appeal against order of CIT(A)/NFAC dated 16.04.2025 which had upheld ex-parte assessment framed u/s 144. AO had made addition on account of unsecured loan treating it as unexplained. Assessee contended that loan had been fully repaid in subsequent year & lender company continued to hold active status as per MCA records.
However, both AO & CIT(A) proceeded ex-parte due to repeated non-compliance by Assessee despite several notices. CIT(A) dismissed appeal while simultaneously confirming additions on merits, which Tribunal observed as a contradictory & unsatisfactory approach since effective opportunity was denied to Assessee.
Before Tribunal, Assessee’s Authorised Representative pleaded that one more opportunity may be granted to substantiate claim with proper evidence. Revenue did not seriously object. Tribunal found merit in the plea & held that in interest of natural justice, matter should be remanded for fresh consideration.
Accordingly, Tribunal set aside order of CIT(A) & restored matter back for de novo adjudication after granting adequate opportunity to Assessee. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
