What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It set aside the impugned order and restored the matter to the Assessing Officer for fresh adjudication after providing an adequate opportunity of hearing to the assessee.

The assessee's appeal was filed with a delay of 73 days. Both parties agreed that the proceedings before the lower authorities were concluded ex parte.

What were the issues?

Whether the delay in filing the appeal should be condoned and whether the ex parte assessment order should be set aside to provide a reasonable opportunity of hearing.

Shaiq Ahmed Khan, Chandigarh vs ITO | ITAT Chandigarh 2026

Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH

Before: SHRI LALIET KUMAR & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Harry Rikhy, Advocate

For Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR

Hearing: 30.06.2026Pronounced: 06.07.2026

आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 71/CHD/2026 �नधा�रण वष� / Assessment Year: 2012-13 Shaiq Ahmed Khan, The ITO, House No. 4, Sector 27-A, Vs Ward 2(3), Chandigarh. Chandigarh. �थायी लेखा सं./PAN NO: AKUPK9409M अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Harry Rikhy, Advocate Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr.DR Date of Hearing : 30.06.2026 Date of Pronouncement : 06.07.2026

PHYSICAL HEARING O R D E R PER LALIET KUMAR, JM

The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) NFAC [in short ‘the CIT (A)’] dated 25.08.2025 passed for assessment year 2012- 13.

At the outset, the ld. AR submitted that the appeal filed by the assessee is barred by limitation by 73 days and an affidavit

ITA No.71/CHD/2026 A.Y.2012-13 2

explaining the delay has been placed on record. It was submitted

that the delay was neither intentional nor deliberate and occurred

due to unavoidable circumstances. The ld. DR did not seriously

object to the condonation of delay. Considering the contents of the

affidavit and the totality of facts and circumstances, we are

satisfied that the assessee was prevented by sufficient cause from

filing the appeal within the prescribed limitation period.

Accordingly, the delay of 73 days in filing the appeal is condoned

and the appeal is admitted for adjudication on merits.

At the outset, both the learned counsel for the assessee and

the learned Departmental Representative fairly submitted that the

proceedings before the authorities below were concluded ex parte.

They, therefore, submitted that the matter may be restored to the

file of the Assessing Officer for adjudication afresh after providing

adequate opportunity to the assessee.

Having considered the rival submissions and the material on

record, we find that the assessment and the appellate proceedings

culminated in ex parte orders. Although the assessee failed to

diligently prosecute its case before the lower authorities, thereby

resulting in avoidable litigation and the wastage of judicial as well

ITA No.71/CHD/2026 A.Y.2012-13 3

as departmental time, the principles of natural justice require that

a reasonable opportunity of hearing be afforded before an adverse

order is sustained. Therefore, in the interest of substantial justice,

we deem it appropriate to set aside the impugned order of the

learned CIT(A) and restore the matter to the file of the Assessing

Officer for passing a fresh order in accordance with law after

affording adequate opportunity of hearing to the assessee.

However, while granting this indulgence, we consider it

appropriate to impose costs of Rs.3,000/- upon the assessee for

its non-cooperative conduct before the authorities below. The said

amount shall be deposited by the assessee with the PGI Poor

Patients Welfare Fund, PGIMER, Chandigarh, within 30 days from

the date of receipt of this order. The proof of such deposit shall be

furnished before the Assessing Officer at the commencement of the

remand proceedings. Subject to the aforesaid condition, the

Assessing Officer shall decide the matter afresh in accordance with

law after providing reasonable opportunity of hearing. The

assessee is also directed to extend full cooperation and furnish all

documentary evidences and explanations as may be called for by

the Assessing Officer. Since the matter is being restored, we refrain

ITA No.71/CHD/2026 A.Y.2012-13 4

from expressing any opinion on the merits of the additions or the

legal grounds raised in the appeal, and leave all such issues open

for adjudication afresh.

In the result, appeal of the assessee is allowed for statistical

purposes.

Order pronounced on 06.07.2026. Sd/- Sd/-

(MANOJ KUMAR AGGARWAL) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�/ CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5.

सहायक पंजीकार/ Assistant Registrar

SHAIQ AHMED KHAN,CHANDIGARH vs. INCOME TAX OFFICER, WARD 2(3), CHANDIGARH

What did the Tribunal hold?

What were the facts?

What were the issues?

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