THE BEHRAL GSSSS BEHRAL PAONTA SAHIB,PAONTA SAHIB HIMACHAL PRADESH vs. INCOME TAX OFFICER NAHAN, NAHAN HIMACHAL PRADESH

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ITA 1103/CHANDI/2024Status: DisposedITAT Chandigarh27 April 2026AY 2017-185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the assessment was framed ex-parte and the CIT(A) upheld it without adjudicating on merits. In the interest of natural justice, the assessee was granted one more opportunity to present its case.

What were the facts?

The assessee filed an appeal against the ex-parte assessment order and the appellate order, contending that no opportunity of being heard was given and that Section 69A was wrongly invoked. The assessee also raised issues regarding invalid transfer orders and notices.

What were the issues?

Whether the assessment and appellate orders were passed without affording natural justice and proper opportunity to the assessee, and if various procedural provisions of the Income Tax Act were correctly applied.

Which sections of the Income-tax Act were involved?

Section 69A,Section 127,Section 142(1),Section 80A(5),Section 80P,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH

Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY

For Appellant: Smt. Meenu, Advocate
Hearing: 15.04.2026Pronounced: 27.04.2026

आयकर अपील�य अ�धकरण, च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER

आयकर अपील सं./ ITA No. 1103/CHD/2024 �नधा�रण वष� / Assessment Year : 2017-18 The Behral Gssss Behral The ITO, बनाम Paonta Sahib, Nahan Vill Behral, Vs. PO Bata Mandi Teh Paonta Sahib, Dist Sirmour, Himachal Pradesh �थायी लेखा सं./PAN NO: AAABT3011C अपीलाथ�/Appellant ��यथ�/Respondent ( Physical Hearing ) �नधा�रती क� ओर से/Assessee by : Smt. Meenu, Advocate राज�व क� ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई क� तार�ख/Date of Hearing : 15.04.2026 उदघोषणा क� तार�ख/Date of Pronouncement : 27.04.2026 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the assessee against the order dated 17.10.2024 passed by Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi.

2.

Grounds of appeal are as under: - 1. No opportunity of being heard is given to assessee under the principle of natural

1103-Chd-2024

2 justice, no tangible/reliable records from Books of Accounts of Assessee and material/information are in possession of the assessing officer hence section 69A is wrongly forced into the matter. 2. In the absence of Valid transfer order u/s 127 all proceedings and Orders given by AO in this case are void-ab-initio and invalid under the provisions of the Income Tax Act, 1961. That no opportunity of Being Heard is given to the assessee society for the transfer. That the authority has not recorded the reasons for transfer to ensure that the transfer is not arbitrary or capricious. CBDT Circular No. 14, dated 11-4-1955 3. That Section 142(1) notices were invalid and without jurisdiction of AO and not delivered at proper address were bad in the eyes of law and void-ab-initio. Remand report mentioned the involvement of ITO Solan and ITO Nahan without providing valid transfer evidence on 28/08/2019 for issuing 142(1) notices proceedings. Assessee was not aware about transfer proceedings going behind the administrative channels of the tax dept. for issuing 142(1) notices 4. Section 80A (5) are directory in nature and not mandatory, hence can't be invoked for denying the deduction u/s 80P even if ITR is not filed, Section 80 P was introduced to encourage and strengthen the cooperative development in the country. Forming a cooperative society is now a fundamental right under Article 19 clause 1 Sub clause i of the Constitution of India. Denying the 80 P would mar the interest of farmer members of this cooperative society. 4. At the very outset, during the course of proceedings before us, the Ld. Counsel for the Assessee submitted that the

1103-Chd-2024

3 assessment order passed by the Assessing Officer as well as the appellate order passed by the Ld. CIT(A) are ex-parte in nature. It was contended that the Assessing Officer, without having any tangible material or corroborative evidence from the books of account of the Assessee, and despite the relevant information being available on record, has erroneously invoked the provisions of section 69 of the Act. It was further submitted that the Ld. CIT(A), without properly appreciating the facts and merits of the case, has merely upheld the action of the Assessing Officer, which is not sustainable in law. Accordingly, the Assessee prayed that the matter may be set aside and restored to the file of the Assessing Officer for fresh adjudication de novo.

5.

Per contra, the Ld. DR relied mostly on the orders of the authorities below However, simultaneously, he pointed out that despite opportunities given by the Ld. CIT(A) to the Assessee, no compliance was made.

6.

We have considered the findings recorded by the Ld. Assessing Officer in the assessment order as well as those of the Ld. CIT(A) in the appellate order. We have also taken into account the submissions made by the Ld. Counsel for the

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4 Assessee and the arguments advanced by the Ld. Departmental Representative. It is observed that the assessment has been framed ex-parte under section 144 of the Income-tax Act, 1961 and the Ld. CIT(A) has upheld the same without adjudicating the issues on merits. In these circumstances, and in the interest of natural justice, we are of the considered view that the Assessee deserves one more opportunity to present its case.

7.

Accordingly, we set aside the impugned orders and restore the matter to the file of the Assessing Officer for fresh adjudication de novo on merits, after duly considering the submissions and evidences that may be furnished by the Assessee, as well as the material available on record. Needless to add, the Assessing Officer shall afford adequate and reasonable opportunity of being heard to the Assessee. The Assessee is also directed to extend full cooperation in the remand proceedings. All grounds and contentions available under law are kept open. Ordered accordingly.

8.

Since we have remanded the matter back to the file of the AO, therefore, we are not giving any findings on other grounds

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5 of appeal raised by the Assessee. Therefore, the appeal of the Assessee stands allowed for statistical purposes.

9.

In the result, appeal of the Assessee is allowed for statistical purposes.

Order pronounced on 27 .04.2026.

Sd/- Sd/- ( LALIET KUMAR ) ( KRINWANT SAHAY) Judicial Member Accountant Member “आर.के.” आदेश क� ��त�ल�प अ�े�षत / Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File

सहायक पंजीकार/ Assistant Registrar

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