KARAMJIT SINGH TOOR, LUDHIANA,LUDHIANA V. JAO THE INCOME TAX OFFICER WARD 3, KHANNA, KHANNA

ITA 1527/CHANDI/2025

AI Insights

The case involves Shri Karamjit Singh Toor, the appellant, contesting an assessment order for the Assessment Year 2018-19, which was framed on a best judgment basis under section 144 of the Income Tax Act. The AO had added Rs. 40.16 Lacs to the assessee's income, representing agricultural income, which the assessee failed to substantiate during the initial assessment proceedings. The CIT(A) upheld the AO's decision but did not condone the delay in filing the appeal. The Tribunal, considering the principles of natural justice, set aside the CIT(A)'s order and directed a fresh assessment, allowing the assessee another opportunity to present his case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838743 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 21-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: SUDHIR SEH GAL LD
• Keywords: Condonation of delay; Set aside; Principle of natural justice
• Section: 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.1527/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2018-19) Shri Karamjit Singh Toor Village Barmalipur, Near Bija Ludhiana – 141416 बनाम/ Vs. ITO Ward-3 Khanna - 141401 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. FMPPS-8259-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/Appellant by : Sh. Sudhir Sehgal (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) - Sr. DR सुनवाईकीतारीख/Date of Hearing : 17.02.2026 घोषणाकीतारीख /Date of Pronouncement : 18.02.2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018- 19 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 16-01-2025 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 on 19-04-2021. In the assessment order, Ld. AO made addition of Rs.40.16 Lacs which represent agricultural income as shown by the assessee. The assessee failed to make any representation during assessment Printed from counselvise.com 2 proceedings. The Ld. CIT(A) did not condone the delay of 71 days. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is condonation of delay and another opportunity of hearing which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate its case. 2. We find that a small delay of 71 days could have been condoned considering the background of the assessee. Nevertheless, keeping in mind the principles of natural justice, we deem it fit to provide another opportunity of hearing to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and Ld. AO is directed to frame assessment de novo. The assessee is directed to plead and prove its case forthwith. 3. The appeal stand allowed for statistical purposes. Order pronounced on 18th February, 2026. -Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated:18.02.2026 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 "