HARMEET SINGH,SHIMLA V. INCOME TAX OFFICER WARD SHIMLA, SHIMLA

ITA 413/CHANDI/2025

AI Insights

The case involves Shri Harmeet Singh, the appellant, contesting the order of the Commissioner of Income Tax (Appeals) for the assessment year 2017-18. The primary grievances included the dismissal of his appeal by the CIT (Appeals) and the upholding of an ex-parte order under section 144 of the Income Tax Act, 1961, which was claimed to be against the principles of natural justice. Additionally, the appellant challenged the treatment of cash deposits during the demonetization period as unexplained income and the estimation of business profit by the CIT (Appeals). The Tribunal found procedural lapses in the notification of hearing dates and the delivery of the CIT (Appeals) order, leading to the decision to set aside the CIT (Appeals) order and remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783205 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Appeal Filed On: 21-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: ABHINAV BIZWARIA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

" आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ “एकल” चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC” CHANDIGARH Įी संजय गग[, ÛयाǓयक सदèय BEFORE: SH. SANJAY GARG, JUDICIAL MEMBER आयकर अपील सं./ ITA No.413/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2017-18 Shri Harmeet Singh, Kothi No.4, Upper Kaithu, Near Mela Ram Petrol Pump, Shimla. बनाम The ITO, Ward, Shimla. èथायी लेखा सं./PAN NO: ACYPS4021P अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Abhinav Bizwaria, Advocate and Shri Parveen Sharma, Advocate राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT,Sr.DR सुनवाई कȧ तारȣख/Date of Hearing : 04.11.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 06.11.2025 HYBRID HEARING आदेश/ORDER The present appeal has been preferred by the assessee against the order dated 27.01.2024 of the Commissioner of Income Tax (Appeals) NFAC, Delhi [in short ‘the CIT (Appeals)] pertaining to 2017-18 assessment year. 2. The assessee in this appeal has taken the following grounds of appeal : Printed from counselvise.com ITA 413/CHD/2025 A.Y. 2017-18 2 1. That in the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), is not justified in dismissing the appeal of the assessee/ appellant by holding that the ground of appeal is not tenable and upholding the additions made by the assessing officer. 2. That in the facts and circumstances of the case, the learned Commissioner of Income Tax (Appeals), is not justified in upholding the ex-parte order passed under section 144 of the Income Tax Act, 1961 by the Ld. Assessing Officer, that too without giving an opportunity of being heard. The same is 'against the principles of natural justice. 3. That in the facts and circumstances of the case, the learned Authorities below are not justified in treating the cash deposited in the bank account during the demonization period as unexplained income of the assessee/ appellant under section 69A read with section 115BBE of the Income Tax Act, 1961. The said addition is absolutely illegal and not sustainable in the eyes of law. 4. That in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) is not justified in upholding the addition of Rs.4,17,430/- made by estimating the business profit of the assessee @ 19% of the total receipt. 5. That the order of the Ld. CIT(A) is bad in law and Facts 3. As per the report of the Registry, the appeal is time barred by 355 days. A separate application has been filed for condonation of delay, wherein, it has been pleaded that the assessee did not come to know about the notices/date of hearing before the ld.CIT (Appeals). It has been pleaded that the CIT (Appeals) sent the notices of hearing at a different e-mail Id and not at the e-mail Id which was mentioned in appeal Form No.35 furnished before him. The assessee, thus, was not aware of the dates of hearing before the CIT (Appeals) resulting into an ex-parte order of the CIT (Appeals). That even the assessee did not receive the copy of the order of the CIT (Appeals). Therefore, the delay has occurred in filing the appeal. The ld. counsel for the Printed from counselvise.com ITA 413/CHD/2025 A.Y. 2017-18 3 assessee has submitted that the assessee has a fair case on merit and assessee may be given an opportunity to present his case before the AO. He, in this respect, has brought my attention to the impugned assessment order to submit that the same is also an ex-parte/best judgement assessment order passed by the AO u/s 144 of the Income Tax Act. The ld. counsel for the assessee has submitted that due to certain unavoidable circumstances, assessee could not present his case before the AO also. 4. The ld. DR, on the other hand has relied upon the findings of the lower authorities. 5. Considering the rival submissions, I am of the view that interest of justice will be well served if the assessee is given an opportunity to present his case before the AO, however subject to payment of a reasonable cost which I assess at Rs.5000/- to be deposited in Prime Minister Relief Fund. Accordingly, the impugned order of the CIT (Appeals) is set aside and the matter is restored to the file of AO for decision afresh but subject to the condition that the assessee will deposit a sum of Rs.5,000/- to the Prime Minister Relief Fund and furnish the evidence/receipt of such deposit before the AO6. With the above observations, Printed from counselvise.com ITA 413/CHD/2025 A.Y. 2017-18 4 appeal of the assessee is treated as allowed for statistical purposes. Order pronounced on 06th November,2025. Sd/- ( संजय गग[) (SANJAY GARG ) ÛयाǓयक सदèय/ Judicial Member “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. आयकर आयुÈत (अपील)/ The CIT(A) 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 6. गाड[ फाईल/ Guard File Assistant Registrar Printed from counselvise.com "