SPA SOAPS & SURFACTANTS,CHANDIGARH vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE -1(1), CHANDIGARH , CHANDIGARH

Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 08-08-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 read with Section 147 of the Act on 09-05-2023. In the assessment order, Ld. AO made addition of cash deposit for Rs.20.31 Lacs. The Ld. CIT(A) dismissed the appeal in limine for want of condonation of delay of 207 days. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is adjudication of appeal on merits which has been opposed by Ld. Sr. DR. The Ld. AR has stated that the assessee is able to substantiate its case on merits. The Ld. AR also raised pertinent legal grounds.

Keeping in mind the principles of natural justice and considering the period of delay, I am inclined to accept the prayer of Ld. AR. Accordingly, the appeal is restored back to Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case forthwith. The issue of delay would not be raised by Ld. CIT(A).

The appeal stands allowed for statistical purposes. Order pronounced on 27th November, 2025.