BAJRANG LAL KEDIA,CHANDIGARH vs. INCOME TAX OFFICER, WARD 5(3), CHANDIGARH

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ITA 726/CHANDI/2025Status: DisposedITAT Chandigarh19 May 2026AY 2012-20135 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted the assessee's inability to effectively place evidence before the lower authorities. In the interest of substantial justice, the matter was restored to the Assessing Officer for fresh adjudication, granting the assessee one more opportunity to substantiate its claim.

What were the facts?

The assessee filed a return of income which was processed. Later, a notice under section 142(1) was issued, and the assessee failed to provide details regarding a deposit of Rs. 20,00,000/-. The Assessing Officer assessed the income at Rs. 26,53,840/-, and the CIT(A) upheld this addition.

What were the issues?

Whether the assessee was given adequate opportunity to present evidence, and if a fresh opportunity should be granted for substantiating the claim.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 142(1),Section 148

AI-generated summary — verify with the full judgment below

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

Before: SHRI LALIET KUMAR & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Raj Kamal, Advocate
For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr.DR
Hearing: 18.05.2026Pronounced: 19.05.2026

PER LALIET KUMAR, JM

The present appeal has been preferred by the assessee

against the order passed by the Ld. Commissioner of Income

Tax (Appeals) [ in short ‘the CIT (A)’] dated 19.03.2025 for the assessment year 2012-13. 2. The brief facts of the case are that the assessee filed its return of income for assessment year 2012-13 on 28.08.2012

ITA-726/CHD/2025 A.Y. 2012-13 2

declaring total income of Rs.6,53,840/- and the said return

was processed u/s 143(1) of the Income Tax Act on 09.01.2013. Subsequently, as a result of change in incumbency, a fresh

notice u/s 142(1) was issued on 03.07.2019. Further notices

and questionnaire u/s 143(2)/142(1) of the Act were issued. In response, assessee filed details/information. The assessee was asked to file further details regarding deposit of Rs.20,00,000/-in HDFC Bank Limited on 06.02.2012, however

assessee did not respond to it. Accordingly, AO assessed the income of the assessee at Rs.26,53,840/-.

4.

Aggrieved by the assessment order, the assessee carried

the matter before the Ld. CIT(A). However, from the record it is evident that despite various opportunities granted by the appellate authority, the assessee was not able to furnish the requisite documents, explanations and supporting evidences as called for by the Ld. CIT(A). Consequently, the Ld.

CIT(A)proceeded to decide the appeal substantially on the basis

of material available on record and in the absence of effective

assistance from the side of the assessee or its Authorised

Representative. The Ld. CIT(A), after considering the ITA-726/CHD/2025 A.Y. 2012-13 3

assessment order and material available on record, concurred

with the findings of the Assessing Officer and upheld the addition made by him.

5.

During the course of hearing before us, the Ld. AR

submitted that the assessee could not properly place the relevant evidence and reconciliations before the lower

authorities, and therefore, one more opportunity may be granted to substantiate its. It was further submitted that proceedings u/s 148 of the Act are invalid and without

following the procedure as laid down by the law.

6.

Per contra, the Ld. DR strongly relied upon the orders of the authorities below and submitted that despite repeated

opportunities before the lower authorities, no proper

documentary evidence was furnished in support of the claim.

7.

We have heard the rival submissions and perused the material available on record. We note that the authorities below

have recorded findings of non-compliance with statutory

conditions. At the same time, we also notice that the assessee

could not effectively place the relevant documentary evidence

ITA-726/CHD/2025 A.Y. 2012-13 4

and reconciliations before the Ld. CIT(A), resulting in the disposal of the appeal substantially on the basis of available

material and without proper assistance from the side of the assessee.

8.

Considering the entirety of the facts and circumstances of the case and in the interest of substantial justice, we are of the considered opinion that the assessee deserves one more

opportunity to substantiate its claim. Accordingly, we deem it appropriate to restore the matter to the file of the Assessing

Officer for fresh adjudication. The assessee is directed to furnish complete details, books of account, supporting

vouchers and documentary evidences to establish its case.

8.

1 The Assessing Officer shall examine all the evidence and legal contentions that may be raised by the assessee and thereafter decide the issue afresh in accordance with law after

affording adequate and reasonable opportunity of being heard

to the assessee. Needless to say, in case the assessee again

fails to cooperate or fails to furnish the requisite evidences,

the Assessing Officer shall be at liberty to decide the matter in accordance with law on the basis of material available on ITA-726/CHD/2025 A.Y. 2012-13 5

record.

9.

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

Order pronounced on 19.05.2026. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER “Poonam”

आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : अपीलाथ"/ The Appellant

1.

""थ"/ The Respondent 2. आयकर आयु"/ CIT 3. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT,

4.

CHANDIGARH गाड" फाईल/ Guard File 5.

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