INCOME TAX OFFICER, LUDHIANA V. J K INDUSTRIES, LUDHIANA

ITA 1165/CHANDI/2025

AI Insights

The case involves the Income Tax Officer, Ludhiana, as the appellant, and M/s J.K. Industries as the respondent. The dispute arose from an assessment for the year 2018-19, initially framed by the Assessing Officer on a best judgment basis under sections 144 and 147 of the Income Tax Act, following a reopening of the case. The Commissioner of Income Tax (Appeals) later remanded the case for a de novo assessment, which the revenue challenged in the Tribunal. The Tribunal, after considering the submissions and the factual matrix, supported the CIT(A)'s decision to remand the case, citing the need for adherence to natural justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847924 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Chandigarh
• Assessment Year: 2018-2019
• Appeal Filed On: 11-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANAV BANSAL LD
• Keywords: Principle of natural justice
• Section: 147; 148; 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1165/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2018-19) Income Tax Officer R.No.210, Ward 6(1) Aaykar Bhawan, Rishi Nagar Ludhiana (Punjab) – 141001 बनाम/ Vs. M/s J.K. Industries 7788/1A, St. No.5 New Angad Dev Colony Ludhiana (Punjab) - 141001 ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. AAFFJ-3466-J (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Manav Bansal (CIT) – Ld. DR ŮȑथŎकीओरसे/Respondent by : None सुनवाईकीतारीख/Date of Hearing : 24-03-2026 घोषणाकीतारीख /Date of Pronouncement : 24-03-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2018-19 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 15-07-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 r.w.s. 147 of the Act on 25-03-2024. At the time of hearing, none appeared for assessee. Accordingly, the appeal was heard with the able assistance of Ld. CIT-DR. Printed from counselvise.com 2 2. It emerges that the assessee’s case was reopened and notice u/s 148 was issued on 07-04-2022. The assessee filed part submissions and Ld. AO made two additions on best judgment basis. The assessee made various submissions during first appeal. Considering the same, Ld. CIT(A) exercised remand power u/s 251(1)(a) and directed Ld. AO to make de novo assessment. Aggrieved, the revenue is in further appeal before us. 3. Upon careful consideration of factual matrix, it could be seen that the assessee made partial submissions and accordingly, the assessment was framed on best judgment basis. The Ld. CIT(A) exercised remand power u/s 251(1)(a) considering various submissions of the assessee. In our considered opinion, the factual matrix justifies exercise of remand power by Ld. CIT(A) keeping in mind the principles of natural justice. Therefore, we do not find any infirmity in the same. 4. The appeal stand dismissed. Order pronounced on 24th March, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER AS Dated: 24-03-2026 Printed from counselvise.com 3 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "