JASWINDER SINGH,LUDHIANA vs. INCOME TAX OFFICER, WARD-6(1), LUDHIANA, LUDHIANA
Facts
The assessee appealed against a CIT(A) order for AY 2011-12, which did not admit their appeal due to a 2 year and 10 month delay. The original assessment by the AO was a best judgment assessment under section 147 r.w.s. 144, including an addition of Rs. 25 lacs for cash deposits.
Held
Citing Collector, Land Acquisition vs. Mst. Katiji & Ors., the Tribunal condoned the delay in filing the appeal. Since the assessment was ex-parte, the case was remanded back to the AO to frame a de novo assessment, allowing the assessee to present their case.
Key Issues
1. Whether the delay in filing an appeal before the CIT(A) should be condoned. 2. Whether a de novo assessment should be ordered when the original assessment was ex-parte and made on a best judgment basis.
Sections Cited
147 of the Income Tax Act, 144 of the Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2011- 12 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 18-11-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 147 r.w.s. 144 of the Act on 12-12-2018. The only prayer of Ld. AR is to restore the assessment back to the file of Ld. AO which has been opposed by Ld. Sr. DR.
The assessment has been framed on best judgment basis wherein Ld. AO made addition of cash deposit of Rs.25 Lacs. The Ld. CIT(A) did not admit the appeal for want of condonation of delay of 2 years and 10 months. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the guiding principles laid down by Hon’ble Apex Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987; (2) TMI 61 SC), we condone the delay in first appeal. Since the assessment has been framed on ex-parte basis, we direct Ld. AO to frame de novo assessment with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 15th January, 2026. - - (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 15-01-2026
आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF