INCOME TAX OFFICER, LUDHIANA vs. RAJESH GUPTA PROP. M/S SHRI BALAJI TRADING CO., LUDHIANA

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ITA 459/CHANDI/2025Status: DisposedITAT Chandigarh15 September 2025Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that as per Section 251(1) of the Income Tax Act, 1961, the CIT(A) has the power to set aside an assessment order if it was passed ex-parte. Therefore, the CIT(A)'s action was justified.

What were the facts?

The Revenue appealed the order of the CIT(A) who had set aside the assessment order to pass a fresh one. The original assessment order was passed ex-parte.

What were the issues?

Whether the CIT(A) was justified in setting aside an ex-parte assessment order for a fresh assessment.

Which sections of the Income-tax Act were involved?

Section 251(1),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Tej Mohan Singh, Advocate
For Respondent: Dr. Ranjit Kaur, Addl. CIT Sr.DR
Hearing: 11.09.2025Pronounced: 15.09.2025

PHYSICAL HEARING O R D E R PER RAJPAL YADAV, VP

The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 27.01.2025 passed for assessment year 2017-18.

2.

The grievance of the Revenue is that ld. CIT (Appeals) has set aside the assessment order for passing the fresh assessment order.

ITA No.459/CHD/2025 A.Y.2017-18 2

3.

With the assistance of ld. Representative, we have gone through the record carefully. We take note of the relevant part of Section 251(1) of the Income Tax Act, 1961, which reads as under : Powers of the Joint Commissioner (Appeals) or the Commissioner (Appeals) 251.(1) In disposing of an appeal, the Commissioner (Appeals)shall have the following powers- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment Provided that where such appeal is against an order of assessment made under Section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment. x x x 3.1 A perusal of the above would indicate that ld. CIT (Appeals) has power to set aside the assessment order where it was passed ex-parte u/s 144 of the Income Tax Act. We find that in this case, assessment was passed ex-parte and therefore, the ld. CIT (Appeals) has rightly set aside the assessment order for passing a fresh assessment order. Accordingly, we do not find any merit in this appeal. It is dismissed.

4.

In the result, appeal of the Revenue is dismissed.

Order pronounced on 15.09.2025.

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