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Facts
The assessee's appeal for AY 2017-18 was dismissed by the CIT(A) for a delay of 207 days. The AO had framed the assessment u/s 144 read with Section 147 and made an addition of Rs. 20.31 Lacs in cash deposits.
Held
The Tribunal, considering the principles of natural justice and the period of delay, restored the appeal back to the CIT(A) for a fresh adjudication on merits. The CIT(A) was directed not to raise the issue of delay.
Key Issues
Whether the appeal dismissed in limine for delay should be restored for adjudication on merits, and whether the delay issue should be waived.
Sections Cited
144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
(िनधा�रण वष� / Assessment Year: 2017-18) M/s SPA Soaps & Surfactants DCIT Circle-1(1), C/o Tejmohan Singh, Advocate Chandigarh - 160017 बनाम/ Vs. #527, Sector10-D Chandigarh 160011 �थायीलेखासं./जीआइआरसं./PAN/GIR No. ABPFS-0097-M (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Tejmohan Singh (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR (virtual) सुनवाईकीतारीख/Date of Hearing : 27-11-2025 घोषणाकीतारीख /Date of Pronouncement : 27-11-2025 आदेश / O R D E R
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.