SPA SOAPS & SURFACTANTS,CHANDIGARH V. DY. COMMISSIONER OF INCOME TAX, CIRCLE -1(1), CHANDIGARH , CHANDIGARH

ITA 1179/CHANDI/2025

AI Insights

The case involves M/s SPA Soaps & Surfactants, the appellant, who contested an assessment order made by the Deputy Commissioner of Income Tax, Circle-1(1), Chandigarh, for the Assessment Year 2017-18. The assessment was made on a best judgment basis under sections 144 and 147 of the Income Tax Act, which included an addition of Rs. 20.31 Lacs due to a cash deposit. The CIT(A) dismissed the initial appeal due to a significant delay in filing (207 days), which led the appellant to seek further appeal before the Income Tax Appellate Tribunal. The tribunal, considering the principles of natural justice and the circumstances of the delay, decided to restore the matter to the CIT(A) for a fresh decision on the merits, without considering the delay issue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788483 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 17-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD. VIRTUAL
• Assessee Lawyers: TEJ MOHAN SINGH LD
• Keywords: Condonation of delay; Principle of natural justice
• Section: 147; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं. / ITA No.1179/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2017-18) M/s SPA Soaps & Surfactants C/o Tejmohan Singh, Advocate #527, Sector10-D Chandigarh 160011 बनाम/ Vs. DCIT Circle-1(1), Chandigarh - 160017 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABPFS-0097-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Tejmohan Singh (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR (virtual) सुनवाईकीतारीख/Date of Hearing : 27-11-2025 घोषणाकीतारीख /Date of Pronouncement : 27-11-2025 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 08-08-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 read with Section 147 of the Act on 09-05-2023. In the assessment order, Ld. AO made addition of cash deposit for Rs.20.31 Lacs. The Ld. CIT(A) dismissed the appeal in limine for want of condonation of delay of 207 days. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is adjudication of appeal on merits which has been opposed by Ld. Sr. DR. The Ld. AR Printed from counselvise.com has stated that the assessee is able to substantiate its case on merits. The Ld. AR also raised pertinent legal grounds. 2. Keeping in mind the principles of natural justice and considering the period of delay, I am inclined to accept the prayer of Ld. AR. Accordingly, the appeal is restored back to Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case forthwith. The issue of delay would not be raised by Ld. CIT(A). 3. The appeal stands allowed for statistical purposes. Order pronounced on 27th November, 2025. -Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER Dated: 27-11-2025 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 "