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Facts
The assessee's appeal for AY 2018-19 arose from an order confirming an addition of Rs.64,12,575/- made by the AO for unexplained import expenditure. The assessee had failed to comply with previous proceedings before the CIT(A).
Held
The Tribunal, considering principles of natural justice, decided to grant the assessee another opportunity to present its case before the CIT(A). The impugned order was set aside and the appeal was restored for de novo adjudication.
Key Issues
Whether the assessee should be granted another opportunity to explain the source of import expenditure before the lower appellate authority, despite previous non-compliance.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 08-07-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 17-02-2021. In the assessment order, Ld. AO made addition of Rs.64,12,575/- on the allegation that the assessee could not explain the source of large import expenditure. Though the assessee preferred further appeal, it remained non-compliant which is evident from para-4 of the impugned order. Accordingly, the assessment was confirmed against which the assessee is in further appeal before us. The only prayer of Ld. AR is another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.
Keeping in mind the principles of natural justice, we deem it fit to provide another opportunity of hearing to the assessee to substantiate its case before Ld. CIT(A). Accordingly, the impugned order is set aside and appeal is restored back to Ld. CIT(A) for denovo adjudication. The assessee is directed to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 06th April, 2026.
-Sd- -Sd- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER AS Dated: 06-04-2026 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