KANHAIYA RICE MILLS SANGHERA ROAD JHALOOR BARNALA,PUNJAB V. THE INCOME TAX OFFICER WARD-1, BARNALA

ITA 1115/CHANDI/2024

AI Insights

The case involves Kanhaiya Rice Mills, the appellant, contesting an ex-parte order by the CIT(A) regarding the Assessment Year 2017-18. The primary issue was the non-compliance with appellate notices due to the death of the assessee's counsel, which led to an ex-parte decision without examining the merits of the case. The Tribunal noted that the CIT(A) had dismissed the appeal for non-prosecution without considering the merits or the explanations provided by the assessee regarding cash deposits. The Tribunal found sufficient cause for the delay in filing the appeal and admitted it for adjudication, ultimately deciding to remand the case for a thorough re-examination of the submissions and evidence provided by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315958 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Set aside; Opportunity of being heard
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH: PHYSICAL MODE BEFORE: SHRI. LALIET KUMAR, JUDICIAL MEMBER आयकर अपील सं./ ITA No. 1115/Chd/2024 िनधाŊरण वषŊ / Assessment Year : 2017-18 Kanhaiya Rice Mills Sanghera Road Jhaloor Barnala, Punjab-148101 बनाम The ITO Ward-1, Barnala ˕ायी लेखा सं./PAN NO: AAJFK8818M अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Sudhir Sehgal, Advocate and राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 07/05/2025 उदघोषणा की तारीख/Date of Pronouncement : 14/05/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order of the Ld. CIT(A)/ NFAC, Delhi dated 29.08.2024, for the Assessment Year 2017–18. 2. At the outset, the Registry has pointed out that there is a delay of 8 days in filing the present appeal, for which the assessee has filed a condonation application. 3. Upon consideration of the condonation application filed by the assessee, I am satisfied that sufficient cause has been demonstrated. Accordingly, the delay is hereby condoned, and the appeal is admitted for adjudication. 4. The assessee has raised several grounds of appeal, including the primary grievance that the CIT(A) passed an ex-parte order without deciding the appeal on merits, even though there was a sufficient cause for non-compliance with the appellate notices. The assessee has submitted that its earlier counsel had passed away, and the notices were not brought to its attention, leading to non-compliance. 5. I have perused the material available on record. The assessment was framed u/s 144 on account of non-filing of the return of income and failure to satisfactorily explain 2 the source of cash deposits amounting to Rs, 12,26,000/-. The Ld. CIT(A) also dismissed the appeal for non-prosecution, despite noting that notices were issued via email. However, the Ld. CIT(A) did not examine the merits of the assessee’s contentions, nor the explanation offered in the reply dated 07.10.2019 before the AO, wherein month- wise sales, purchase details and partner capital balances were allegedly provided. 6. In the interest of justice and fair play, it is my considered view that the matter should be remanded to the Assessing Officer for proper verification and reconsideration of the assessee’s submissions and supporting documents. The assessee shall extend full cooperation in the fresh proceedings and furnish all necessary documentary evidence to substantiate its claims. 7. Accordingly, I set aside the impugned order of the CIT(A) and restore the matter to the file of the Assessing Officer for fresh adjudication in accordance with the law, after affording a reasonable opportunity of being heard to the assessee. 8. It is clarified that nothing herein shall be construed as an expression on the merits of the case. The Assessing Officer shall decide the matter independently and uninfluenced by any observations made in the earlier orders. 9. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 14/05/2025 Sd/- ( LALIET KUMAR) JUDICIAL MEMBER AG Date: 14/05/2025 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 "