SHIV SHANKER,YAMUNA NAGAR HARYANA V. INCOME TAX OFFICER, WARD 5 YAMUNANAGAR, YAMUNANAGAR HARYANA.

ITA 870/CHANDI/2025

AI Insights

The case involves Shri Shiv Shanker, the proprietor of M/s Shyam Footwear, who appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, which was dated 30.04.2025. The original assessment was made by the Assessing Officer under sections 143(3) read with section 147 of the Income Tax Act on 31.03.2022, where certain sales were disbelieved and added as unexplained cash credit under section 68. The CIT(A) had remanded the matter back to the AO, assuming the assessment was under section 144, which was contested. The Tribunal found that the CIT(A) erred in exercising the remand power under section 251(1)(a) and noted that the legal challenge regarding the reopening of the case was not addressed by the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792031 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 29-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: B.M. MONGA; ROHIT KAURA
• Keywords: Set aside; Unexplained cash credit
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.870/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2016-17) Shri Shiv Shanker Prop. M/s Shyam Footwear 14 Gandhi Market, Yamuna Nagar Haryana - 135001 बनाम/ Vs. ITO Ward-5, Yamuna Nagar Aaykar Bhawan, Sector-17, Yamuna Nagar, Haryana- 135003 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ACQPS-7150-P (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. B.M. Monga (Advocate) and Sh. Rohit Kaura (Advocate) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Sr. DR सुनवाईकीतारीख/Date of Hearing : 08-12-2025 घोषणाकीतारीख /Date of Pronouncement : 09-12-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 30.04.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 147 of the Act on 31.03.2022. Having heard rival submissions, the appeal is disposed-off as under. Printed from counselvise.com 2 2. It emerges that the assessee’s case was reopened and the assessee’s objection against reopening were dismissed by Ld. AO vide separate order dated 11.03.2022. In the assessment order, Ld. AO disbelieved the sales of the assessee as made to Shri Sunil Kumar prop. Aggarwal Enterprises and added the same as unexplained cash credit u/s 68. The assessment was framed u/s 143(3) r.w.s. 147 of the Act. The Ld. CIT(A), assuming the assessment to be u/s 144, remanded the matter back to Ld. AO to reconsider assessee’s submissions / explanations. Aggrieved, the assessee is in further appeal before us. 3. We find that the assessment was framed u/s 143(3) r.w.s. 147 of the Act and therefore, Ld. CIT(A) erred in exercising the remand power u/s 251(1)(a). Further, the assessee’s legal challenge to reopening have not been adjudicated by Ld. CIT(A). Considering the same, we set aside the impugned order and restore the appeal back to Ld. CIT(A) for de novo adjudication with a direction to the assessee to plead and prove its case forthwith. All the issues are kept open. 4. The appeal stand allowed for statistical purposes. Order pronounced on 09th December, 2025 -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09-12-2025 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 "