What did the Tribunal hold?

The Tribunal restored the matter back to the AO for a fresh assessment, emphasizing the principles of natural justice. The assessee was directed to present and prove its case.

The assessee's appeal before the CIT(A) was dismissed due to non-representation. The assessment was framed by the AO on a best judgment basis under Section 144, leading to twin additions.

What were the issues?

Whether the assessee was denied a fair hearing by the lower appellate authority and if the matter should be remanded for fresh assessment.

Rajesh Kumar Bandha, Mandi… vs DCIT | s.144 | ITAT Chandigarh 2026

Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH VIRTUAL HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.1028/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2017-18) Shri Rajesh Kumar Bandha DCIT Central Circle – 3 SCO 1-6, 3rd Floor, Kitchlu Nagar 153, Subhash Nagar, Sector 20C बनाम/ Vs. Mandi Gobindgarh, Punjab – 147301 Ludhiana, Punjab – 141001 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AGUPB-3172-G (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Parveen Jindal (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 09-07-2026 घोषणाकीतारीख /Date of Pronouncement 14-07-2026 : आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals)-5, Ludhiana [CIT(A)] dated 23.02.2026 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 on 19.12.2019 wherein Ld. AO made twin additions to assess income at Rs.31.67 Lacs. The Ld. CIT(A) dismissed the appeal for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before Tribunal. The only prayer of Ld. AR is another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.

Keeping in mind the principles of natural justice, I accept the prayer of Ld. AR. Accordingly, the impugned order is set aside and the matter stand restored back to the file of Ld. AO for fresh assessment with a direction to the assessee to plead and prove its case forthwith. 3. The appeal stand allowed for statistical purposes. Order pronounced on 14th July, 2026.

-Sd- (MANOJ KUMAR AGGARWAL) 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

ASSISTANT REGISTRAR

ITAT CHANDIGARH

RAJESH KUMAR BANDHA,MANDI GOBINDGARH vs. DCIT,CENTRAL CIRCLE-3,LUDHIANA, LUDHIANA

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