What did the Tribunal hold?

The Tribunal accepted the assessee's prayer for a fresh adjudication, citing principles of natural justice. The matter was restored to the CIT(A) for de-novo adjudication, with a direction to the assessee to present its case.

The assessee remained unrepresented before the Assessing Officer and the CIT(A). The AO made an addition of Rs. 33.56 Lacs on a best judgment basis due to lack of representation. The CIT(A) confirmed this addition.

What were the issues?

Whether the assessee should be given an opportunity to present its case before the appellate authorities after remaining unrepresented in the lower proceedings.

Vandana Sharma, Chandigarh vs ITO | s.144 | ITAT Chandigarh 2026

Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH

For Respondent: Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR (Virtual)

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.542/CHANDI/2026 (िनधा�रण वष� / Assessment Year: 2017-18) Vandana Sharma ITO Ward – 5(4) H. No. 658, P.S. Bank Society बनाम/ Vs. Chandigarh Sector 49-A , Chandigarh – 160047 �ायीलेखासं./जीआइआरसं./PAN/GIR No. CHHPS-7199-N (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Sh. Manoj Kumar (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR (Virtual)

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 26.05.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 20.12.2019. The registry has noted delay of 12 days in the appeal, the condonation of which has been sought by Ld. AR. The Ld. AR also prayed for restoring the matter back to Ld. CIT(A) on the ground that the assessee has remained unrepresented therein. 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 cash deposit for Rs.33.56 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 and admit the appeal. Accordingly, the impugned order is set aside and the matter is restored back to the file of Ld. CIT(A) for de-novo adjudication 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

VANDANA SHARMA,CHANDIGARH vs. INCOME TAX OFFICER, WARD 5(4), CHANDIGARH

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