PARKASH THAKUR,CHANDIGARH V. INCOME TAX OFFICER, CHANDIGARH

ITA 332/CHANDI/2024

AI Insights

The case involves Shri Parkash Thakur, the appellant, who contested the ex-parte orders passed by the Income Tax Officer (ITO) and the Commissioner of Income Tax (Appeals) [CIT(A)]. The appellant's primary grievance was the lack of a proper hearing before the imposition of a substantial tax liability on an income of Rs.2,18,68,857 for the assessment year 2018-19. The Tribunal noted that the CIT(A) dismissed the appeal for want of prosecution without adjudicating on merits, which was found inconsistent with the requirements of Section 250(6) of the Income Tax Act. The Tribunal decided to grant another opportunity to the appellant to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298523 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Assessee Lawyers: YASHPREET SINGH
• Keywords: Set aside
• Section: 148; 250

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 332/CHD/2024 नधा\u0011रण वष\u0011 / Assessment Year: 2018-19 Shri Parkash Thakur, SCO 43, 2nd Floor, Sector 20, Chandigarh. Vs The ITO, Chandigarh. \u0016थायी लेखा सं./PAN NO: AURPT8353N अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri Yashpreet Singh, CA Revenue by : Smt. Kusum Bansal, CIT, DR Date of Hearing : 26.03.2025 Date of Pronouncement : 21.04.2025 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP The assessee is in appeal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 31.01.2024 passed for assessment year 2018-19. 2. The assessee has taken seven grounds of appeal while impugning the order of the ld. CIT(A). However, first fold of grievance of the assessee is that both the authorities have ITA No.332/CHD/2024 A.Y.2018-19 2 passed ex-parte orders against the assessee without providing due opportunity of hearing. 3. With the assistance of ld. Representative, we have gone through the record carefully. We find that AO made reference to the information available with the Department on the basis of internal data vide which assessee's transactions during the year have been reflected in the bank accounts as well as sale/purchase of properties. The AO has issued notice under Section 148 but it was not replied by the assessee. Ultimately, he has passed the ex- parte assessment order. 4. Dissatisfied with the above, assessee carried the matter in appeal before the CIT(A) but the appeal of the assessee has been dismissed for want of prosecution. Sub- section (6) of Section 250 contemplates that ld. CIT(A) would state the points in dispute and thereafter record reasons in support of the conclusion on those points. The ld. CIT(A) has not adjudicated the appeal on merit, rather dismissed it for want of prosecution which is not in coherence to the mandate provided under sub-section (6) of ITA No.332/CHD/2024 A.Y.2018-19 3 Section 250 of the Act. No doubt assessee was little bit negligent while prosecuting his litigation with the Income Tax Department but the punishment in the shape of tax liability on the income of Rs.2,18,68,857/- is far disproportionate to the alleged negligence. Therefore, in the interest of justice, we deem it appropriate to grant one more opportunity to the assessee. We set aside both the impugned orders and restore all these issues to the file of AO for fresh adjudication. The assessee is directed to participate the assessment proceedings and submit the requisite details as and when called upon by the AO. The assessee is further directed to communicate his latest e-mail address as well as address on which notices can be served. This exercise be completed within two months from the receipt of this order. 5. In the result, appeal is allowed for statistical purposes. Order pronounced on 21.04.2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT ITA No.332/CHD/2024 A.Y.2018-19 4 “Poonam” आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "