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Facts
For Assessment Year 2018-19, the Assessing Officer framed a best judgment assessment under Section 144, treating Rs. 33,24,120/- of agricultural income as income from other sources due to the assessee's non-compliance. The CIT(A) confirmed this assessment. The assessee's representative sought a fresh opportunity for hearing before the lower authorities.
Held
The Tribunal, in adherence to principles of natural justice, accepted the assessee's request for another opportunity. Consequently, the assessment was restored to the Assessing Officer for a de novo assessment, with the direction for the assessee to present and prove its case forthwith.
Key Issues
Whether the best judgment assessment classifying agricultural income as income from other sources was justified without adequate opportunity, and if principles of natural justice warranted remanding the case for a fresh hearing.
Sections Cited
Section 144
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा"रणवष" / Assessment Year: 2018-19) Shri Parmod Kumar Negi ITO Rampur Bushahar Ward No. 3 Barang, Kalpa, Barang, बनाम/ Vs. Himachal Pradesh - 172001 Kinnaur, Himachal Pradesh – 172107 "थायीलेखासं./जीआइआरसं./PAN/GIR No. AFEPN-8712-K (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant by : Sh. M.R. Sharma (Advocate) – Ld. AR ""थ"कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Sr. DR सुनवाईकीतारीख/Date of Hearing : 12.01.2026 घोषणाकीतारीख /Date of Pronouncement : 13.01.2026 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 learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 22-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 23-05-2021. In the assessment order, Ld. AO made considered agricultural income of Rs.33,24,120/- as income from other sources for non-compliance by the assessee. The Ld. CIT(A) confirmed the assessment for the same very reasons. The only prayer of Ld. AR is another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.
Keeping in mind the principles of natural justice, we accept the prayer of Ld. AR. Accordingly, the assessment is restored back to Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith.