CHADHA MOTORS,KURUKSHETRA vs. ITO, KURUKSHETRA
आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCH, ‘A’, CHANDIGARH
BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER &
SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No. 1145/CHD/2024
Ǔनधा[रण वष[ / Assessment Year : 2017-18
Chadha Motors,
Ladwa,
Kurukshetra 136135
बनाम
Vs.
The ITO,
Kurukshetra
èथायी लेखा सं./ PAN NO: AAIFC0237B
अपीलाथȸ/Appellant
Ĥ×यथȸ/Respondent
( HYBRID MODE )
Ǔनधा[ǐरती कȧ ओर से/Assessee by : Sh. Ankush Sharma, Advocate (Virtual),
राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR for Dr.Ranjit Kaur, Addl., Sr.DR
सुनवाई कȧ तारȣख/Date of Hearing
:
07.07.2025
उदघोषणा कȧ तारȣख/Date of Pronouncement
:
08.07.2025
आदेश/Order
Per Krinwant Sahay, AM :
Appeal in this case has been filed by the assessee against the order dated 01.10.2024 passed by the Ld.
CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2017-18. 2. Grounds of appeal are as under:
1145-Chd-2024
Chadha Motors, Kurukshetra
That the order of the learned CIT(A) under National Faceless Appeal Centre is arbitrary, illegal and against the fact. 2. That the Learned CIT(A) is not justified in passing order without serving the Hearing Notice u/s 250 and just passed an order which is without following the principle of natural justice. 3. That on the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an addition of Rs. 78,33,600/- u/s 69A of the Income Tax Act, 1961 by treating the cash deposits & bank interest as unexplained money. 4. That the Appellant craves leave to amend, alter, add or delete all or any of the above grounds of appeals.
The brief facts of the case, as per Assessment order, are as under:- The assessee had not filed return of income for the A.Y 2017-18 u/s 139(1) of the I.T. Act. As per the NMS information available with this office, the assessee has not filed return of income for the A.Y. 2017-18. In absence of any ITR for the year under consideration, the 1145-Chd-2024 Chadha Motors, Kurukshetra nature of business activity of the assessee, if any, cannot be ascertained.
However, as the information available with Department that Shri Darshan Lal, the Prop
M/s Chadha Motors has made cash deposits of Rs. 78,33,600/- during the period from 09.11.2016 to 31.12.2016 was pushed under operation Clean Money on ITBA system. In reply to the Notice issued u/s 142(1) of the I.T. Act, the assessee submitted that he was a partner in M/s Chadha Motors and cash deposits of Rs. 78,33,600/- made in A/C No 359105500001 maintained with ICICI Bank,
Ladwa belong to firm M/s Chadha Motors having PAN during the Financial Year 2016-
17 relevant to the A.Y. 2017-18. 4. On the basis of this information, the case was reopened by the issuing notice u/s 147 of the Income Tax
Act, 1961 (in short 'the Act').
5. At the very outset, the Counsel of the assessee brought to the notice of the Bench that the assessment order was passed u/s 144/147 r.w.s. 144B of the Act (as 1145-Chd-2024
Chadha Motors, Kurukshetra per para 16 of the assessment order). Similarly, the Ld.
CIT(A) also has passed an ex-parte order because of the non-compliance of the assessee. The Ld. counsel argued that as the assessee did not receive notice issued by the NFAC, Delhi, therefore, it could not be complied with.
However, despite the fact that there was no compliance on the part of the assessee, the Ld. CIT(A) was required to pass a speaking order on merits on the basis of material available on record but that he has not been done.
6. That the Ld. DR relied on the orders of the authorities below.
7. We find that the order passed by the Assessing Officer is an ex-parte order passed u/s 144 and ld. CIT(A) has also passed an ex-parte order without bringing on record anything on merits. Therefore, keeping in view the element natural justice, we are of the considered view that the matter should be remanded back to CIT(A) for fresh adjudication. Accordingly, the case is remanded back to the CIT(A) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of 1145-Chd-2024
Chadha Motors, Kurukshetra hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeal of the Assessee is allowed for statistical purposes.
8. In the result, the appeal is allowed for statistical purposes.
Order pronounced on 08.07.2025. ( LALIET KUMAR )
Accountant Member
“आर.के.”
आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to :
1. अपीलाथȸ/ The Appellant
2. Ĥ×यथȸ/ The Respondent
3. आयकर आयुÈत/ CIT
4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH
5. गाड[ फाईल/ Guard File
सहायक पंजीकार/