G K RESIDENCY PRIVATE LIMITED,PUNJAB vs. DCIT/ACIT(CEN)-1 CHANDIGARH, CHANDIGARH
Facts
The assessee filed six appeals against ex-parte orders of the CIT(A) for assessment years 2013-14 and 2017-18 to 2021-22. The CIT(A) upheld assessment orders without full adjudication, noting lack of submissions from the assessee. The assessee argued that it was compiling details for a large group of appeals and that significant additions (e.g., Rs.1.17 Cr for AY 2018-19) leading to high tax liability were disproportionate to alleged negligence.
Held
The Tribunal found that the ex-parte disposal of appeals was inappropriate given the substantial additions to income and the resulting disproportionate tax liability compared to the assessee's alleged negligence. Consequently, the Tribunal set aside the CIT(A)'s orders for all assessment years and remitted the matters back to the CIT(A) for fresh adjudication. The assessee was granted liberty to submit necessary details before the CIT(A).
Key Issues
Whether the CIT(A) was justified in passing ex-parte orders without full adjudication, and if the resulting tax liability from significant additions was proportionate to the assessee's alleged non-compliance.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA Nos. 1322 to 1327/CHD/2025 �नधा�रण वष� / A.Y. : 2013-14 & 2017-18 to 2021-22 G.K.Residency Pvt. Ltd., The DCIT/ACIT, Plot No. 1265-C, Sector 82, Vs (Central)-I, JLPL, Mohali, SO-Sohana, Roopnagar, Chandigarh. Mohali, Punjab. �थायी लेखा सं./PAN NO: AAECG2167K अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Parikshit Aggarwal, CA Revenue by : Shri Manav Bansal, CIT DR Date of Hearing : 19.02.2026 Date of Pronouncement : 24.02.2026
PHYSICAL HEARING O R D E R PER RAJPAL YADAV, VP
The present bunch of six appeals is directed at the instance of the assessee against the separate orders of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 21.08.2025 passed for assessment year 2013-14 and 2017-18 to 2021-22.
The ld. counsel for the assessee, at the outset submitted that ld. First Appellate Authority has upheld the
ITA Nos.1322 to 1327/CHD/2025 2
assessment orders by passing an ex-parte order in all these assessment years. The ld.CIT (Appeals) did not adjudicate the issues by calling all the records, rather observed that AO has looked into all these aspects. The assessee has not submitted any written submissions or other material, so that he can differ with view taken by the AO.
The ld. CIT DR, on the other hand contended that ld.CIT (Appeals) has given opportunity and it was for the assessee to file written submissions and produce other explanation before the ld. First Appellate Authority. In the absence of such a material, ld.CIT (Appeals) has gone through the assessment orders and thereafter upheld the assessment orders. The ld. counsel for the assessee further contended that there was a huge group wherein 40 appeals were pending before the ld.CIT (Appeals). The assessee was in the process of compiling the details. Rather, it has filed the details in 20 appeals, but ld.CIT (Appeals) has decided six appeals ex-parte.
We have duly considered the rival contentions and gone through the record carefully. A perusal of the record for
ITA Nos.1322 to 1327/CHD/2025 3
assessment year 2018-19 would indicate that income of the assessee has been determined at Rs.1,17,37,000/- as against declared loss of Rs.4,14,858/-. Thus, the punishment in the shape of the tax liability on a huge addition of Rs.1.17 Cr is far disproportionate than any negligence, if any, alleged to the assessee for not submitting complete details before the ld.CIT (Appeals). The assessee has pointed out that more than 40 appeals were pending and after receipt of notice, it was in the process of compiling the details for submission. In the above situation, disposal of appeals ex-parte is not an appropriate step at the end of the ld. First Appellate Authority, more particularly when additions to the income of the assessee is of a magnitude to Rs.1.17 Cr. Thus, we are of the view that even if assessee has not prosecuted its Income Tax litigation with diligence, then also the punishment in these six years in the shape of tax liability is disproportionate to the alleged negligence of the assessee. Accordingly, we are of the view that ends of justice would meet if we set aside the impugned orders of the ld.CIT (Appeals) in all these assessment years and restore these issues to the file of ld.CIT (Appeals) for fresh
ITA Nos.1322 to 1327/CHD/2025 4
adjudication. The assessee will be at liberty to submit any details in support of its explanation before the ld. First Appellate Authority. Accordingly, all the appeals are allowed for statistical purposes. 5. In the result, all the appeals are allowed for statistical purposes.
Order pronounced on 24.02.2026.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : अपीलाथ�/ The Appellant 1. ��यथ�/ The Respondent 2. आयकर आयु�/ CIT 3. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड� फाईल/ Guard File 5.
सहायक पंजीकार/ Assistant Registrar
