What did the Tribunal hold?

The Tribunal restored the matter back to the AO for de-novo assessment, allowing the assessee an opportunity to present and prove its case, adhering to the principles of natural justice.

The assessee remained unrepresented before the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)). The AO made an addition of Rs. 17.61 Lacs on a best judgment basis, which was confirmed by the CIT(A).

What were the issues?

Whether the assessee should be given an opportunity to represent its case before the AO and CIT(A) after remaining unrepresented in the lower proceedings.

Achharwal Co Op Agri Serv Ltd… 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.540/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2017-18) Achharwal Co. Op. Agri Serv. Ltd. ITO Ward – 1 बनाम/ Village – Achharwal PO Thalwandi Jagraon Tehsil Jagraon, Ludhiana Vs. Punjab – 142032 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AADTA-2691-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Manish Gupta (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Sh. Vivek Vardhan (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) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 19.01.2026 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 11.12.2019. 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 made

addition of bank credit for Rs.17.61 Lacs 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

ACHHARWAL CO OP AGRI SERV LTD,VILLAGE ACHHARWAL vs. ITO, WARD-1, JAGRAON, JAGRAON

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