WHISTLER HOLDING CORPORATION PRIVATE LIMITED,CHANDIGARH vs. ITO. WARD 2(1), CHANDIGARH, CHANDIGARH

आयकर अपीलीय अिधकरण,च�ीगढ़ �ायपीठ “बी” , च�ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE �ी लिलत कुमार, �ाियक सद� एवं �ी मनोज कुमार अ�वाल, लेखा सद� BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.820/Chd/ 2026 िनधा�रण वष� / Assessment Year : 2023-24 Whistler Holding Corporation बनाम The ITO Private Limited Ward 2(1), Chandigarh SCO 117-118, Sector 17B, Chandigarh – 160017 �ायी लेखा सं./PAN NO: AABCW4498E अपीलाथ�/Appellant ��थ�/Respondent िनधा�रती की ओर से/Assessee by : Smt. Shruti Khandelwal, Advocate for Shri Parikshit Aggarwal, C.A राज� की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 16/07/2026 उदघोषणा की तारीख/Date of Pronouncement : 21/07/2026 आदेश/Order PER LALIET KUMAR, J.M: The assessee filed the present appeal against the order passed by the Ld. CIT(A), National Faceless Appeal Centre, Delhi, arising out of the assessment framed under section 143(3) read with section 144B of the Income-tax Act, 1961 for Assessment Year 2023-24. The assessee had filed its return declaring total income of Rs.1,91,14,920/-. The case was selected for scrutiny primarily on the issues of low income from TCS receipts relating to liquor business and claim of large refund. The Assessing Officer completed the assessment determining the total income at Rs.2,46,00,299/- by, inter alia, making disallowance under section 40(a)(ia) and disallowing expenditure on account of interest and penalty. 2. The appeal before the Ld. CIT(A) was also dismissed ex parte as the assessee failed to respond to the notices issued during the appellate proceedings and no submissions or documentary evidence were furnished. 3. Against the order of the Ld. CIT(A) the assessee preferred an appeal before the Tribunal.

2 due to inadvertent reasons, resulting in the assessment as well as the first appellate order being passed without effective participation of the assessee. It was pleaded that the assessee possesses necessary documentary evidence in support of its claim and deserves one final opportunity to substantiate the same before the first appellate authority. The Ld. AR assured the Bench that the assessee shall remain vigilant and fully cooperate in the appellate proceedings and shall not seek unnecessary adjournments. It was, therefore, prayed that the impugned order may be set aside and the matter restored to the file of the Ld. CIT(A) for adjudication afresh on merits. 5. Per contra, the Ld. DR relied upon the orders of the lower authorities. It was submitted that adequate opportunities had been afforded both during the assessment proceedings and before the Ld. CIT(A), however, the assessee failed to avail the same. It was, therefore, contended that no interference was called for in the impugned order. However, the Ld. DR fairly submitted that in case the Bench is inclined to restore the matter, appropriate conditions may be imposed to ensure diligent prosecution of the appeal by the assessee. 6. We have heard the rival submissions and carefully perused the material available on record. It is an undisputed position that the assessee remained non- compliant before both the Assessing Officer as well as the Ld. CIT(A), resulting in the assessment being framed and the appeal being dismissed without effective assistance from the assessee. At the same time, it is equally well settled that the rules of natural justice require that a litigant should ordinarily be afforded a reasonable opportunity of being heard before its rights are finally adjudicated.

6.1 Considering the totality of the facts and circumstances of the case, we are of the considered view that one final opportunity deserves to be granted to the assessee to substantiate its claim before the Ld. CIT(A). However, the conduct of the assessee in not appearing before the authorities below cannot be appreciated and deserves to be deprecated. Therefore, while restoring the matter, the assessee is required to compensate for the avoidable wastage of judicial time.

6.2 Accordingly, in the interest of substantial justice, we set aside the impugned order of the Ld. CIT(A) and restore the entire matter to his file for adjudication afresh in accordance with law, after providing adequate opportunity of hearing to the assessee. The assessee shall file all necessary documentary evidence and shall fully

3 cooperate in the appellate proceedings without seeking unwarranted adjournments. 6.3 The restoration of the matter is, however, made subject to the condition that the assessee shall deposit cost of Rs.3,000/- with the Poor Relief Fund within 30 days from the receipt of this order and shall produce the receipt of such deposit before the Ld. CIT(A) at the time of hearing. In the event of failure to deposit the aforesaid cost, the Ld. CIT(A) shall be at liberty to proceed in accordance with law. Accordingly, the appeal of the assessee is treated as allowed for statistical purposes. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced on 21/07/2026 Sd/- Sd/- मनोज कुमार अ�वाल लिलत कुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद�/ ACCOUNTANT MEMBER �ाियक सद� /JUDICIAL 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