RAJINDER PAL MITTAL ,PATIALA vs. INCOME TAX OFFICER - WARD SANGRUR, SANGRUR

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ITA 962/CHANDI/2026Status: DisposedITAT Chandigarh20 July 2026AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and remanded the matter back for fresh adjudication. The CIT(A) was directed to provide a reasonable opportunity of hearing and decide the grounds on merits.

What were the facts?

The assessee appealed against an assessment order where an addition was made under Section 56(2)(vii)(b)(i). The CIT(A) dismissed the appeal for non-prosecution without adjudicating the grounds on merits.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal for non-prosecution without deciding the grounds on merits, and if the matter should be restored for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 56(2)(vii)(b)(i)

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.962/Chd/ 2026 िनधा�रण वष� / Assessment Year : 2016-17 Rajinder Pal Mittal बनाम The ITO # 22, Factory Area, Patiala Ward Sangrur Punjab-147001 Punjab-148001 �ायी लेखा सं./PAN NO: ACZPP8034C अपीलाथ�/Appellant ��थ�/Respondent िनधा�रती की ओर से/Assessee by : Shri Rakesh Cajla, 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 : 20/07/2026 आदेश/Order PER LALIET KUMAR, J.M: The assessee preferred an appeal before the Ld. CIT(A) against the assessment order passed under section 147 read with section 144B of the Income-tax Act, 1961 for A.Y. 2016-17, whereby an addition of Rs.66,17,221/- was made under section 56(2)(vii)(b)(i) treating the alleged value of construction as property received without consideration. The assessee had also challenged the validity of reopening under section 147 and raised several legal as well as factual grounds. However, the Ld. CIT(A), observing that despite issuance of various notices the assessee failed to file effective submissions, dismissed the appeal and upheld the assessment order without adjudicating the grounds raised on merits.

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 impugned appellate order has been passed ex parte without deciding the issues raised by the assessee on merits. It was contended that the assessee could not effectively represent the matter before the Ld. CIT(A) due to bona fide reasons and that the default was neither deliberate nor intentional. The Ld. AR submitted that the

2 assessee has a good case on merits and possesses documentary evidence to substantiate his claim. It was, therefore, prayed that in the interest of substantial justice, one effective opportunity may be granted to the assessee and the matter may be restored to the file of the Ld. CIT(A) for adjudication afresh. The Ld. AR further undertook that the assessee shall duly cooperate in the appellate proceedings and shall not seek unnecessary adjournments.

4.

Per contra, the Ld. DR relied upon the orders of the lower authorities. It was submitted that adequate opportunities had been afforded by the Ld. CIT(A) but the assessee failed to avail the same. Therefore, according to the Ld. DR, no interference with the impugned order was called for. However, it was fairly submitted that if the Bench considers it appropriate to restore the matter, suitable directions may be issued to the assessee to extend full cooperation before the appellate authority.

5.

We have heard the rival submissions and carefully perused the material available on record. It is an admitted position that the Ld. CIT(A) has dismissed the appeal mainly on account of non-prosecution and has not adjudicated the grounds of appeal on merits. The appellate authority being the final fact-finding authority under the Act is expected to examine the issues raised before it by passing a reasoned and speaking order after appreciating the facts and evidence placed on record.

5.1 Considering the totality of the facts and circumstances of the case, and in order to advance the cause of substantial justice, we deem it appropriate to set aside the impugned order of the Ld. CIT(A) and restore the matter to his file for adjudication afresh. The Ld. CIT(A) shall afford adequate and reasonable opportunity of being heard to the assessee and thereafter decide all the grounds of appeal on merits by passing a reasoned and speaking order in accordance with law.

5.2 The assessee is also directed to remain vigilant and extend full cooperation in the appellate proceedings by furnishing all documentary evidence and explanations as may be called for by the Ld. CIT(A). It is made clear that the assessee shall not seek unnecessary adjournments and shall diligently prosecute the appeal. In case of any failure on the part of the assessee to avail the opportunities

3 so granted, the Ld. CIT(A) shall be at liberty to decide the appeal in accordance with law on the basis of the material available on record.

5.3 Accordingly, the impugned order of the Ld. CIT(A) is set aside and the matter is remanded back to the file of the Ld. CIT(A) for fresh adjudication in accordance with law after providing adequate opportunity of hearing to the assessee.

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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