GARG INTERNATIONAL,LUDHIANA vs. ITO, WARD-1(5), LUDHIANA

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ITA 506/CHANDI/2025Status: DisposedITAT Chandigarh14 July 2026AY 2017-182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, adhering to principles of natural justice, granted the assessee another opportunity for a hearing before the lower authorities. This was subject to the assessee paying a cost of Rs. 5,000/- to a charitable fund.

What were the facts?

The Assessing Officer made an addition of Rs. 201.94 Lacs on account of fictitious transactions. The CIT(A) confirmed the assessment as the assessee did not provide a substantive representation. The assessee then appealed to the Tribunal.

What were the issues?

Whether the assessee should be granted a fresh opportunity to present its case before the lower authorities, considering principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Manoj Kumar Aggarwal (Accountant Member)

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 04.02.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 263 of the Act on 25.03.2023. The only prayer of Ld. AR is another opportunity of hearing before lower authorities on the ground that the assessee is in a position to substantiate its case. The Ld. Sr. DR has opposed the same.

2.

In the assessment order, Ld. AO made addition of Rs.201.94 Lacs on account of fictitious transactions. The Ld. CIT(A) confirmed the assessment for want of any substantive representation from the assessee. Aggrieved, the assessee is in further appeal before Tribunal.

3.

Keeping in mind the principles of natural justice, we accept the prayer of Ld. AR subject to payment of cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to the Poor Patient Relief Fund of PGI Hospital, Chandigarh. The proof of the same would be furnished by the assessee to Ld. CIT(A) who would proceed for de novo adjudication. The assessee is directed to plead and prove its case forthwith.

4.

The appeal stands allowed for statistical purposes. Order pronounced on 14th July, 2026 - - (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 14-07-2026 आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant

2.

""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF

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