MOHAN SINGH,CHANDIGARH vs. THE INCOME TAX OFFICER, CHANDIGARH

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ITA 960/CHANDI/2026Status: DisposedITAT Chandigarh20 July 2026AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT set aside the impugned orders and restored the matter to the Assessing Officer for de novo adjudication. The assessee was granted one final opportunity to present their case, subject to payment of costs.

What were the facts?

The assessee's appeal against an ex-parte assessment order was heard by the ITAT. The assessee claimed inability to represent their case effectively before lower authorities due to inadvertent circumstances.

What were the issues?

Whether the assessee should be granted a fresh opportunity to present their case before the Assessing Officer due to prior non-representation, and if so, under what conditions.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

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 �ी मनोज कुमार अ�वाल, लेखा सद� BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.960/Chd/ 2026 िनधा�रण वष� / Assessment Year : 2016-17 Mohan Singh बनाम The ITO Village Bhagat Majra, Post Rani Ward 6(1), Chandigarh Majra, Tehsil Kharar, Mohali, Punjab-140901 �ायी लेखा सं./PAN NO: EMEPS7277D अपीलाथ�/Appellant ��थ�/Respondent िनधा�रती की ओर से/Assessee by : Shri Manoj Kumar, Advocate (Virtual Mode) 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 : 20/07/2026 आदेश/Order PER LALIET KUMAR, J.M: The assessee has preferred the present appeal against the order of the Ld. CIT(A), whereby the action of the Assessing Officer in framing the assessment under sections 147/144 of the Income-tax Act, 1961, was upheld. The reassessment was initiated on the basis of information regarding sale of agricultural land and the Assessing Officer treated the land as a capital asset, bringing the resultant gain to tax. The assessee had challenged the reopening as well as the addition on various legal and factual grounds before the first appellate authority. However, despite issuance of several notices, the assessee did not appear before the lower authorities and the appeal came to be decided ex parte on the basis of the material available on record. 2. Against the order of the Ld. CIT(A) the assessee preferred an appeal before the Tribunal.

3.

During the course of hearing the Ld. AR submitted that the assessee could not effectively represent his case before the Assessing Officer as well as

2 before the Ld. CIT(A) due to inadvertent circumstances, resulting in the passing of the assessment order and the appellate order without proper representation. It was submitted that the assessee is now desirous of pursuing the matter diligently and is in possession of relevant documentary evidence to substantiate his claim that the land sold was not liable to capital gains tax and that all legal and factual issues require proper examination. It was, therefore, pleaded that one final opportunity may be granted in the interest of substantial justice by restoring the matter to the file of the Assessing Officer. The Ld. AR assured that the assessee shall extend full cooperation in the remand proceedings and shall not seek unnecessary adjournments.

4.

Per contra, the Ld. DR supported the orders of the lower authorities and submitted that sufficient opportunities had already been afforded to the assessee during the assessment as well as appellate proceedings. The Ld. DR, however, fairly submitted that if the Bench is inclined to restore the matter, appropriate conditions may be imposed upon the assessee so as to ensure his diligent participation in the fresh proceedings.

5.

We have heard the rival submissions and perused the material available on record. It is an admitted position that the assessee did not effectively participate before the Assessing Officer as well as before the Ld. CIT(A), resulting in adjudication of the matter without proper assistance from the assessee's side. At the same time, the issues involved require examination on the basis of relevant documentary evidence and, therefore, in the larger interest of justice, one effective opportunity deserves to be granted to the assessee.

5.1 Accordingly, we deem it appropriate to set aside the impugned orders and restore the entire matter to the file of the Ld. Assessing Officer for de novo adjudication in accordance with law after affording adequate opportunity of being heard to the assessee. The assessee shall file all supporting documents and explanations as may be required by the Assessing Officer and shall cooperate fully in the assessment proceedings. The Assessing

3 Officer shall thereafter pass a reasoned and speaking order after considering the evidences and submissions so furnished.

5.2 However, considering that the assessee failed to appear before the lower authorities, thereby causing unnecessary litigation and avoidable consumption of judicial time, we consider it appropriate to impose costs of Rs.3,000/-, which shall be deposited by the assessee with the Poor Patient Relief Fund, PGIMR, Chandigarh before the Assessing Officer. Proof of such deposit shall be furnished during the remand proceedings. The grant of fresh opportunity is thus made subject to the aforesaid condition.

5.3 With these directions, the impugned order is set aside and the matter is restored to the file of the Ld. Assessing Officer for fresh adjudication in accordance with law. Accordingly, the appeal is allowed for statistical purposes.

6.

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

Order pronounced on 20/07/2026 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

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