PARVINDER SINGH,LUDHIANA V. INCOME TAX OFFICER WARD-6(1), LUDHIANA

ITA 166/CHANDI/2025

AI Insights

The case involves an appeal by Parvinder Singh against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which dismissed his appeal for non-prosecution. The original assessment was made ex-parte under sections 147 and 144 of the Income Tax Act, 1961, resulting in an addition of Rs. 43,03,944 under section 69A due to alleged unexplained transactions in shares/scrips. The Tribunal found that both the assessment and the first appellate proceedings were conducted ex-parte without providing an effective and reasonable opportunity of being heard to the assessee, which contravenes the principles of natural justice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847931 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chandigarh
• Assessment Year: 2012-2013
• Appeal Filed On: 01-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “एसएमसी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “SMC”, CHANDIGARH HEARING THROUGH: HYBRID MODE ŵी लिलत क ुमार, Ɋाियक सद˟ BEFORE: SHRI. LALIET KUMAR, JM आयकर अपील सं./ ITA No. 166/Chd/2025 िनधाŊरण वषŊ / Assessment Year : 2012-13 Parvinder Singh #2948, Gurdev Nagar Near Flamez Mall, Malhra Road Ludhiana, Punjab - 141001 बनाम ITO Ward – 6(1) Aayakar Bhawan, Rishi Nagar Ludhiana, Punjab - 141001 ˕ायी लेखा सं./PAN NO: BDQPS8940F अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : None राजˢ की ओर से/ Revenue by : Shri Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 23/03/2026 उदघोषणा की तारीख/Date of Pronouncement : 24/03/2026 आदेश/Order PER LALIET KUMAR, J.M: This appeal filed by the assessee is directed against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi dated 31.05.2024 for the assessment year 2012–13, arising from the assessment order passed by the Assessing Officer u/s 147 r.w.s. 144 of the Income Tax Act, 1961. 2. The brief facts, as borne out from the record, are that the assessment in the present case was framed ex-parte u/s 147 r.w.s. 144 of the Act, wherein an addition of Rs. 43,03,944/- was made u/s 69A of the Act on account of alleged unexplained transactions in shares/scrips. The Ld. CIT(A), however, dismissed the appeal of the assessee primarily on account of non-prosecution, observing that despite issuance of multiple notices during appellate proceedings, the assessee failed to make any compliance or furnish any submissions. 3. The Ld. Authorised Representative submitted that both the assessment as well as the first appellate proceedings were completed ex parte and the assessee was not Printed from counselvise.com afforded an effective and reasonable opportunity of being heard. It was thus contended that the matter deserves to be restored for fresh adjudication in the interest of justice. 4. The Ld. Departmental Representative, on the other hand, relied upon the orders of the lower authorities. 5. We have heard the rival submissions and carefully perused the material available on record. It is observed that the assessment has been completed ex-parte and subsequently, the Ld. CIT(A) has also dismissed the appeal for non-prosecution without adjudicating the issues on merits. In our considered opinion, such an approach defeats the principles of natural justice, particularly when the addition is substantial and the issues raised by the assessee go to the root of the matter, including validity of reopening and addition made u/s 69A of the Act. 6. At the same time, it is equally evident from the record that the assessee has not been diligent in pursuing the matter and has failed to comply with various notices issued during both the assessment as well as appellate proceedings. Such conduct of the assessee cannot be appreciated and warrants imposition of cost so as to ensure proper participation in the proceedings. 7. Considering the entirety of facts and circumstances of the case, in the interest of substantial justice, we deem it appropriate to set aside the orders of the lower authorities and remand the matter back to the file of the Assessing Officer for de novo adjudication. The Assessing Officer shall examine all the issues afresh, including the validity of reopening and the addition made, after affording adequate and reasonable opportunity of being heard to the assessee and after considering the evidences and submissions that may be filed by the assessee. 8. However, such restoration is made subject to the condition that the assessee shall deposit a cost of Rs. 10,000/- (Rupees Ten Thousand only) in the Poor Patients Welfare Fund of PGI, Chandigarh, within a period of one month from the date of receipt of this order. The assessee shall place the proof of such deposit before the Assessing Officer at the time of fresh proceedings. In case of failure to deposit the Printed from counselvise.com aforesaid cost within the stipulated time, the Assessing Officer shall be at liberty to proceed in accordance with law. 9. It is further directed that the Assessing Officer shall not be influenced by any of the observations made hereinabove and shall decide the matter independently on merits. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/03/2026 -Sd- लिलत क ुमार (LALIET KUMAR) Ɋाियक सद˟ /JUDICIAL MEMBER AS 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 Printed from counselvise.com "