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Facts
The assessee challenged an assessment of Rs. 554.22 Lacs made by the Assessing Officer under Section 144 on a best judgment basis for Assessment Year 2018-19. The Commissioner of Income Tax (Appeals) had previously refused to admit the assessee's first appeal due to a 2.5-month delay in condonation.
Held
Citing Supreme Court guidelines, the Tribunal condoned the delay in filing the first appeal. It set aside the CIT(A)'s order and restored the case for de novo adjudication by the CIT(A), directing the assessee to present their case promptly.
Key Issues
The primary issue was the condonation of a 2.5-month delay in filing the first appeal against a best judgment assessment, and whether the case should be remitted to the CIT(A) for a fresh hearing on merits.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रण वष� / Assessment Year: 2018-19) Pola Co-Operative Societies Limited ITO Village Pola बनाम/ Vs. Ward Sirhind Fatehgarh Sahib 140406 �थायीलेखासं./जीआइआरसं./PAN/GIR No.AABAT-3441-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ� की ओर से/ Appellant by : Shri Parikshit Aggarwal (CA)– Ld. AR ��थ� की ओर से / Respondent by : Shri Kusum Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 21-07-2025 घोषणाकीतारीख /Date of Pronouncement : 23-07-2025 आदेश / 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 Ld Commissioner of Income Tax (Appeals), National Faceless Appeal Central (NFAC), Delhi [CIT(A)] dated 15-10- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 24-05-2021. The grievance of the assessee is assessment of income at Rs.554.22 Lacs. The assessee has failed to appear before Ld. AO. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 2.5 months. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is condonation of delay in first appeal and disposal of appeal on merits. The Ld. AR has stated that the assessee is in a position to substantiate its claim if another opportunity of hearing is granted to the assessee to plead and prove its case before lower authorities. The Ld. CIT-DR, on the other hand, pleaded for dismissal of the appeal.
Keeping in mind the guiding principles laid down by Hon’ble Supreme Court in the case of N. Balakrishnan vs. M. Krishnamurthy (7 SCC 123), we condone the delay in first appeal and set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) for de novo adjudication by way of speaking order with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 23-07-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 23-07-2025 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