What did the Tribunal hold?

The Tribunal set aside the impugned order and restored the matter to the AO for a de-novo assessment. The assessee is directed to plead and prove its case.

The assessee remained unrepresented before the lower authorities, leading to an assessment on a best judgment basis and confirmation by the CIT(A). The assessee now seeks to present its case before the AO.

What were the issues?

Whether the assessee should be given an opportunity to present its case before the AO after remaining unrepresented before lower authorities, in the interest of natural justice.

Mahaan Parkash Kaundal, Nalagarh vs ITO | s.144 | ITAT Chandigarh 2026

Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.504/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2023-24) Shri Mahaan Parkash Kaundal ITO Ward -9, Palace Road, Nalagarh बनाम/ Vs. Baddi, Solan, Himachal Pradesh Himachal Pradesh – 174101 �ायीलेखासं./जीआइआरसं./PAN/GIR No. HXOPK-4675-M (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Surinder Babbar (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 01-07-2026 घोषणाकीतारीख /Date of Pronouncement 07-07-2026 : आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2023-24 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 12.12.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 04.02.2025. The registry has noted delay of 7 days in the appeal which stand condoned. The only prayer of Ld. AR is to restore the matter back to Ld. AO on the ground that the assessee has remained unrepresented before lower authorities. The Ld. AR stated that the assessee is in a position to substantiate its case. The Ld. Sr. DR has opposed the same. In the assessment order,

Ld. AO assessed assessee’s income at Rs.20.21 Lacs after certain additions for want of any substantive representation from the assessee. The Ld. CIT(A) confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before Tribunal. 2. 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 is restored back to the file of Ld. AO for de-novo assessment with a direction to the assessee to plead and prove its case forthwith. 3. The appeal stands allowed for statistical purpose. Order pronounced on 07th July, 2026

-Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER AS Dated: 07-07-2026 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

MAHAAN PARKASH KAUNDAL,NALAGARH vs. INCOME TAX OFFICER, BADDI

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