ASHISH SHEOKHAND,PANCHKULA V. INCOME TAX OFFICER, PANCHKULA

ITA 429/CHANDI/2025

AI Insights

The case involves an appeal by the assessee, Ashish Sheokand, against the order of the Commissioner of Income Tax (Appeals), which was dismissed for non-prosecution without adjudicating on merits. The primary issues in the appeal were related to unexplained cash deposits and estimated income for the Assessment Year 2017-18. The Tribunal found that the dismissal of the appeal for non-prosecution without deciding on merits was not justified and that the CIT(A) should have adjudicated the appeal based on the available records even in the absence of the assessee. The Tribunal also addressed the procedural delay in filing the appeal, which was attributed to communication failures between the assessee and his Chartered Accountant.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 846487 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chandigarh
• Assessment Year: 2017-2018
• Appeal Filed On: 22-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: NIKHIL SHARMA
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Reasonable cause
• Section: 144; 10; 2

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “एसएमसी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ BEFORE: SHRI. LALIET KUMAR, JM आयकर अपील सं./ ITA No. 429/Chd/2025 िनधाŊरण वषŊ / Assessment Year : 2017-18 Ashish Sheokand Nikhil Sharma & Amit Sharma & Vineet Thakral Advocates House No. 1186, Sector 12-A Panchkula Haryana – 134109 C/o Ashish Sheokand, Flat No. 203 GH 10 Sector 24 Panchkula Hayana - 134116 बनाम ITO Ward – 1 Aayakar Bhawan Sector – 2 Panchkula, Haryana - 134003 ˕ायी लेखा सं./PAN NO: BQAPS1401C अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Nikhil Sharma, CA राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 23/03/2026 उदघोषणा की तारीख/Date of Pronouncement : 24/03/2026 आदेश/Order PER LALIET KUMAR, J.M: This appeal filed by the assessee is directed against the order passed by the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, dated 29.08.2023, for the Assessment Year 2017-18. 2. At the outset, it is observed that there is a delay of 510 days in filing the present appeal before the Tribunal. The assessee has filed an application for condonation of delay explaining the reasons for such delay. It has been submitted that the notices and communications were sent to the email id of the Chartered Accountant and were not brought to the knowledge of the assessee in time, and therefore, the assessee remained unaware of the appellate proceedings before the Ld. CIT(A). It has further been submitted that the delay is neither intentional nor deliberate but occurred due to circumstances beyond the control of the assessee. Printed from counselvise.com 3. Ld. DR opposed the condonation of the delay application. 4. I have considered the submissions made in the condonation petition and perused the material available on record. It is a settled proposition of law that while considering an application for condonation of delay, a liberal approach is to be adopted so as to advance substantial justice. In the present case, I find that the explanation furnished by the assessee constitutes a reasonable cause within the meaning of law. The delay has occurred primarily due to a lack of proper communication between the authorised representative and the assessee, which, in my considered view, is a sufficient cause. Accordingly, in the interest of justice, the delay of 510 days in filing the appeal is hereby condoned. 5. Coming to the merits of the case, it is observed that the assessment in the present case was completed u/s 144 of the Act, wherein additions were made on account of unexplained cash deposits and estimated income. Further, the Ld. CIT(A) has dismissed the appeal of the assessee for non-prosecution without adjudicating the issues on merits, as the assessee failed to appear despite the issuance of notices. 6. In my considered view, the approach adopted by the Ld. CIT(A) is not sustainable in the eyes of law. Even in the absence of the assessee, the Ld. CIT(A) is duty bound to adjudicate the appeal on merits on the basis of material available on record. Dismissal of appeal for non-prosecution without deciding the issues on merits is not justified. 7. Considering the entirety of facts and circumstances of the case, and in the interest of substantial justice, I deem it appropriate to set aside the impugned order of the Ld. CIT(A) and remand the matter back to the file of the Assessing Officer for de novo adjudication. The Assessing Officer shall provide adequate opportunity of being heard to the assessee and decide the issue afresh in accordance with law. The assessee is also directed to fully cooperate in the set aside proceedings and furnish all necessary details. 8. However, considering the conduct of the assessee in not properly pursuing the matter before the lower authorities and the resultant delay in the judicial process, I Printed from counselvise.com deem it appropriate to impose a cost of Rs. 20,000/- (Rupees Twenty Thousand only). The said cost shall be deposited by the assessee within a period of one month from the date of this order with the Red Cross Society, Sector-15, Panchkula. Proof of such a deposit shall be furnished before the Assessing Officer at the time of set aside proceedings. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/03/2026 -Sd- लिलत क ुमार (LALIET KUMAR) Ɋाियक सद˟ /JUDICIAL MEMBER AS आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "