MODERN AUTOMOBILES ENGINEERS,CHANDIGARH vs. INCOME TAX OFFICER, WARD 2(1), CHANDIGARH, CHANDIGARH
1
IN THE INCOME TAX APPELLATE TRIBUNAL
“B” BENCH, CHANDIGARH
HYBRID HEARING
BEFORE HON’BLE SHRI LALIET KUMAR, JM
AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकरअपीलसं./ ITA No.382/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2017-18) & 2. आयकरअपीलसं./ ITA No.383/CHANDI/2025 (िनधाŊरणवषŊ / Assessment Year: 2017-18) M/s Modern Automobiles Engineers 4 MW, Ind Area Phase I Chandigarh-160002 बनाम/ Vs. ITO Ward No 2(1) Chandigarh-160017 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAHFM-3373-M (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent)
अपीलाथŎकीओरसे/ Appellant by : Sh. Vineet Krishan (Advocate) – Ld. AR
ŮȑथŎकीओरसे/Respondent by :
Smt. Tarundeep Kaur (CIT) – Ld. Sr. DR
सुनवाईकीतारीख/Date of Hearing
:
03-09-2025
घोषणाकीतारीख /Date of Pronouncement
:
22-09-2025
आदेश / O R D E R
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid twin appeals by assessee for Assessment Year (AY) 2017-18 assails confirmation of quantum addition as well as confirmation of penalty u/s 272A(1)(d) by learned first appellate authority. The impugned orders have been passed by learned
Commissioner of Income Tax (Appeals), National Faceless Appeal
Centre (NFAC), Delhi [CIT(A)] on dated 19-03-2024 in the matter of an assessment framed by Ld. AO u/s 143(3) of the Act 30-12-2019 and levy of impugned penalty of Rs.10,000/- vide order dated 28-11-2019. The registry has noted delay of 290 days in both the appeals, the condonation of which has been sought by Ld. AR on the strength of condonation petition as accompanied by medical record of partner of assessee-firm. The Ld. AR stated that due to adverse medical conditions of partners, the firm could not make representation before lower authorities. The Ld. CIT-DR has opposed any kind of indulgence.
2. In the assessment order, Ld. AO estimated the income of the assessee at 2.5% of total credits on account of cash deposits during demonetization period. The assessee failed to make any effective representation during assessment proceedings. Consequently, penalty of Rs.10,000/- was also levied u/s 272A(1)(d) for non-compliance of statutory notices. The Ld. CIT(A) confirmed the assessment as well as penalty for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before us.
3. From pleadings of Ld. AR, it emerges that senior partner of assessee-firm left for heavenly abode on 16-09-2024. The other partner Smt. Geeta Talwar is also facing adverse medical conditions.
There was no other partner capable of taking care of tax matters for the assessee. This being so, in our considered opinion, the assessee had reasonable cause for non-representation before lower authorities. On these facts, we admit both the appeals. The quantum appeal stands restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith. The impugned penalty of Rs.10,000/- stand deleted.
4. The quantum appeal ITA No.382/Chandi/2025 stand allowed for statistical purposes. The penalty appeal ITA No.383/Chandi/2025 stand allowed.
Order pronounced on 22-09-2025 (LALIET KUMAR) (MANOJ KUMAR AGGARWAL)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 22-09-2025
आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to :
1. अपीलाथŎ/Appellant
2. ŮȑथŎ/Respondent
3. आयकरआयुƅ/CIT
4. िवभागीयŮितिनिध/DR
5. गाडŊफाईल/GF