SARABPREET SINGH, LUDHIANA,LUDHIANA vs. THE INCOME TAX OFFICER WARD 6(1), LUDHIANA, LUDHIANA

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ITA 229/CHANDI/2026Status: DisposedITAT Chandigarh12 August 2026AY 2019-20203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the matter to the CIT(A) to provide the appellant with one more opportunity to present their case. The assessee was directed to ensure compliance before the CIT(A).

What were the facts?

The assessee's appeal was dismissed by the CIT(A) for non-compliance despite multiple opportunities. The assessee claimed notices were sent to an incorrect email address, leading to their absence. The original assessment order made significant additions to the returned income.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal without affording sufficient opportunity to the assessee, and whether the additions made by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 69A,Section 115BBE

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अिधकरण,च�ीगढ़ �ायपीठ “बी” , च�ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE �ी लिलत कुमार, �ाियक सद� एवं �ी िवजय वमा� , लेखा सद� BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA No. 229 /Chd/ 2026 िनधा�रण वष� / Assessment Year : 2019-20 Sarabpreet Singh बनाम The ITO 497/10, Model Gram Near Kochar Ward 6(1) Market, Ludhiana, Punjab-141001 Ludhiana �ायी लेखा सं./PAN NO: AQYPS4487P अपीलाथ�/Appellant ��थ�/Respondent िनधा�रती की ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज� की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 06/08/2026 उदघोषणा की तारीख/Date of Pronouncement : 12/08/2026 आदेश/Order PER VIJAY VARMA, A.M: This is an appeal filed by the Appellant against the order of the Ld. CIT/ NFAC Delhi dt. 07/11/2025 for the Assessment Year 2019-20 in appeal No. NFAC/2018-19/10350920.

2.

In this appeal the appellant has raised the following grounds:

1.

That the Worthy CIT(A) has erred in passing the order dismissing the appeal of the assessee without allowing the assessee sufficient opportunity of being heard. That the notices were being sent on the incorrect e-mail i.e. 2. suresharvind_123@yahoo.co.in instead of e-mail given on Form 35 i.e. kokisales@gmail.com. 3. That the Worthy CIT(A) has erred in upholding the assessment order passed by the Ld. AO in assessing the income of the assessee at Rs.60,83,217 against the returned income of Rs.5,69,580. 4. a) Notwithstanding the above Ld. AO has erred in making an addition of Rs.20,06,000/- u/s 69A by wrongly applying the rates as per the provisions of Section 115BBE, by treating the cash deposited during the year as un- explained money. (b) That the Ld. AO has erred in making an addition of Rs.31,62,745/- by alleging purchases made from one party namely M/s Gurdip Cycle Industries as under-invoiced and hence, addition have been made by alleging the same as unexplained expenditure.

2 (c) That Ld. AO has erred in making an addition of Rs.2,42,600/- on account of suppression of stock @ of 1% of the closing stock as on 31.03.2019. (d) That the Ld. AO erred in making an addition of Rs. 14,847/- on account of disallowances of expenditure in the nature of “amount written off” debited in the Profit and Loss Account. (e) That the Ld. AO has erred in making an addition of Rs.47,945/- on account of disallowance of the part expenditure in the nature of bank charges reflecting in the Profit & Loss Account without considering the fact that the same represents processing charges of loan taken from TATA Capital Housing Finance, during the year under consideration. (f) That the Ld. AO has erred in making an addition of Rs. 39,500/- on account of part disallowance of Foreign Travel charges without considering the fact that the said expenses has been incurred via banking channels and same has been incurred for the regular business of the assessee. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 3. In this case the Ld. CIT(A) gave three opportunities to the appellant as mentioned in para 4.1 of the appellate order. The dates of hearing were fixed on 18/07/2025, 13/08/2025 and 06/10/2025. However, there has been no compliance. The Ld. CIT(A) therefore dismissed the appellant’s appeal in limine without examining the issue on merits.

4.

The Ld. CIT DR vehemently supported the order of the Ld. CIT(A). The Ld. AR however requested that the matter may be remanded back to the Ld. CIT(A) in the interest of justice.

5.

The rival contentions have been examined. It is noticed that against the returned income of Rs. 5,69,580/- the total income was assessed at Rs. 60,83,217/-. Various additions were made in the assessment order on issues like unaccounted cash payments, under invoicing of bills, unexplained money, under valuation of stock beside disallowance of certain expenses. All these additions have been contested in this appeal. Therefore after considering all the facts and arguments of both the parties, it is considered appropriate to restore the matter to the file of Ld. CIT(A) for giving one more

3 opportunity of hearing to the appellant to present his case. The appellant is also directed to ensure compliance before the Ld. CIT(A).

6.

In the result, appeal of the Appellant is allowed for statistical purposes.

Order pronounced on 12/08/2026

Sd/- Sd/- लिलत कुमार िवजय वमा� (LALIET KUMAR) (VIJAY VARMA) �ाियक सद� /JUDICIAL MEMBER लेखा सद�/ ACCOUNTANT MEMBER AG आदेश की �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��थ�/ The Respondent 3. आयकर आयु�/ CIT 4. आयकर आयु� (अपील)/ The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

BY ORDER, ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KENDRIYA SADAN, SECTOR-9A CHANDIGARH

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