INCOME TAX OFFICE, LUDHIANA V. RIPPAN DHIR, LUDHIANA

ITA 298/CHANDI/2025

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which remanded the matter back to the Assessing Officer. The Revenue contended that the CIT(A) erred in setting aside the matter without discussing the merits, despite the Assessing Officer having provided multiple opportunities for the assessee to respond. The CIT(A)'s decision was based on the newly inserted provision 251(1)(a) of the Income Tax Act, 1961, which allows for such remand under specific circumstances. The Tribunal agreed with the CIT(A)'s application of this provision and dismissed the Revenue's appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831608 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2026
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-02-2025
• Other Referred Cases: Principal Commissioner of Income Tax-3 vs. Ashokji Chanduji Thakor
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL
• Keywords: Unexplained expenditure
• Section: 144; 69C

Judgement Text

" आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 298/CHD/2025 Ǔनधा[रण वष[ / Assessment Year : 2017-18 ITO, Ludhiana बनाम Vs. Rippan Dhir, 247, New Hira Nagar St No. 2, Kakowal Road, Ludhiana 141008 èथायी लेखा सं./ PAN NO: AGAPD1957D अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( PHYSICAL HEARING) Ǔनधा[ǐरती कȧ ओर से/Assessee by : None राजèव कȧ ओर से/ Revenue by : Sh. Rajat Kumar Kureel, CIT DR सुनवाई कȧ तारȣख/Date of Hearing : 05.01.2026 उदघोषणा कȧ तारȣख/Date of Pronouncement : 19.01.2026 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the Revenue against the order dated 01.01.2025 passed by the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi. 2. The grounds raised are as under: - 1. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of Printed from counselvise.com 298-Chd-2025 2 the assessee and setting aside the matter to the file of AO, without going into and discussing the merits of the case that Assessing Officer had given 4 to 5 opportunities to file the reply to the assessee. 2. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee and setting aside the matter to the file of AO, for adjudication without taking into consideration whether there were justifiable grounds for making total non- compliance by the assessee before the CIT(A) as well as AO. 3. That, the Ld. Commissioner of Income Tax (Appeals) has erred in allowing the appeal of the assessee, and setting aside the assessment order back to the file of the A.O after merely provoking the newly inserted provision 251(1)(a) to section 251 of the Income Tax Act, 1961. 4. That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition disallowance of Rs.1,65,28,500/- made by the AO on account of unexplained money u/s 69A r.w.s. 115BBE of the Income Tax Act, 1961. 5. That, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the addition disallowance of Rs.14,92,57,500/- made by the AO on account of unexplained expenditure u/s 69C r.w.s. 115BBE of the Income Tax Act, 1961. 6. That, reliance is placed on the judgement of Hon'ble High Court of Gujarat at Ahmedabad Printed from counselvise.com 298-Chd-2025 3 in the case of Principal Commissioner of Income Tax-3, Vs. Ashokji Chanduji Thakor dated 27.06.2018 wherein the order passed by the Hon'ble ITAT was quashed & order of AO/CIT(A) were restored. Further appeal of the assessee (SLP No. 15019/2021) was also dismissed by the Hon'ble Supreme Court vide order dated 26.07.2021. 7. That the appellant craves leave to add or amend any ground of appeal before it is finally disposed off. 3. None appeared on behalf of the Assessee. 4. From the record, we find that in this case, ld. CIT(A) in his order has remanded this case back to the file of the Assessing Officer for invoking the newly inserted provision of section 251(1) of the Income Tax Act, 1961 (in short 'the Act'). It is important to note that the assessment order in this case has been passaged u/s 144 of the Act. 5. During proceedings before us, the ld. DR relied on the order of the AO. 6. We have considered the findings given by the authorities below and we find that the action of the Ld. CIT(A) in remanding this case back to the file of the Assessing Officer after invoking the new provision to Printed from counselvise.com 298-Chd-2025 4 section 251(1) (a) of the I.T. Act, 1961 is very much in conformity to the legal provision as per the Income Tax Act. Therefore, the appeal of the Revenue against the CIT(A)’s order of remanding it back to the Assessing Officer is justified. Accordingly, appeal filed by the Revenue is dismissed. 7. In the result, appeal of the Revenue stands dismissed. Order pronounced on 19.01.2026. Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "