SUKHVEEN BAGGA,LUCKNOW vs. DY. COMMISSIONER OF INCOME TAX-1 LUCKNOW NEW, LUCKNOW

ITA 818/LKW/2026Status: DisposedITAT Lucknow30 September 2026AY 2023-244 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's appeal before the CIT(A) was dismissed ex parte. Upon reviewing the record, the Tribunal found that certain submissions made by the assessee were not duly examined and verified by the CIT(A), and the appeal was dismissed without affording adequate and reasonable opportunity to the assessee. The Tribunal observed that on certain occasions, the time afforded to the assessee for responding was less than a week. Therefore, considering the totality of the facts, the Tribunal set aside the impugned order of the CIT(A) and restored the grounds of appeal to the file of the CIT(A). The CIT(A) was directed to decide the grounds afresh after duly considering the submissions and evidences furnished by the assessee. The assessee was also directed to cooperate in the proceedings and not seek adjournments without compelling exigency. The grounds raised in the appeal were allowed for statistical purposes. The principle derived is that an appellate authority must provide a reasonable opportunity of being heard and duly examine the submissions and evidence before dismissing an appeal ex parte.

What were the facts?

The assessee, Sukhveen Bagga, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Lucknow Bench, against an order dated 06.05.2026 passed by the Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The assessment year in question is 2023-24. The assessee had declared a total income of Rs.14,23,530/-. The Assessing Officer (AO) framed an assessment under section 143(3) read with section 144B of the Income Tax Act, 1961, making an addition of Rs.33,43,724/- under section 69C as unexplained expenditure, thereby computing the total income at Rs.47,67,254/-. The assessee appealed to the CIT(A), who dismissed the appeal ex parte due to non-compliance. The present appeal is against this dismissal.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in law and on facts by confirming the addition without considering the nature and source of income earned by the appellant during the relevant assessment year? 2. Whether, on the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in law and on facts by confirming the credit card payments to the tune of Rs. 33,43,724/- to the total income of the appellant as unexplained expenditure without considering the provisions of section 69C of the Income Tax Act, 1961? 3. Whether, on the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in law and on facts by confirming the credit card payments to the tune of Rs. 33,43,724/- to the total income of the appellant as unexplained expenditure without considering the opening cash balance, cash withdrawal from bank accounts, payments made through bank out of incomes, and payments made by the spouse of the appellant during the relevant assessment year? 4. Whether, on the facts and in the circumstances of the case, the Ld. CIT(Appeals) erred in law and on facts by confirming the credit card payments to the tune of Rs. 33,43,724/- to the total income of the appellant without considering the financial statements, bank statements, and other relevant supporting documents submitted during the assessment proceedings? 5. Whether, on the facts and in the circumstances of the case, the Ld. CIT(Appeals) failed to appreciate that the Ld. AO passed the assessment order without assuming proper jurisdiction? 6. Whether, on the facts and in the circumstances of the case, the order of Ld. CIT(Appeals) was passed in absolute violation of the principles of Natural Justice, without providing adequate opportunity of being heard, and therefore deserves to be declared a nullity? Assessee's Contentions: The assessee argued that the appeal was dismissed ex parte by the CIT(A) and that the submissions made by the assessee were not duly considered. The assessee prayed for the matter to be remanded back to the CIT(A) in the interest of justice. Revenue's Contentions: The Revenue opposed the assessee's submissions and supported the orders of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 69C,Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “SMC”, LUCKNOW

Before: SHRI KUL BHARAT

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 06.05.2026 pertaining to the assessment year 2023-24. The assessee has raised the following grounds of appeal: - “1. Because on the facts and in the circumstance of the case, the Ld. CIT(Appeals) has erred in law and on facts in confirming the addition without considering the nature a

The order continues below.

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