ITO Vs Rohit Gupta (ITAT Chandigarh)
The appeal before the Income Tax Appellate Tribunal, Chandigarh Bench was filed by the Revenue against the order dated 16.04.2025 passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi, for Assessment Year 2015–16. The dispute concerned whether the Commissioner (Appeals) was justified in setting aside an ex-parte assessment and remanding the matter to the Assessing Officer under the proviso to section 251(1)(a) of the Income Tax Act, 1961.
The assessee had not filed a return of income for the relevant assessment year. The Assessing Officer received information that during the financial year relevant to A.Y. 2015–16, the assessee had made investments in shares amounting to Rs. 26,54,06,000. On this basis, reassessment proceedings under section 147 were initiated and notice under section 148 was issued. As the assessee failed to comply with notices issued under sections 148 and 142(1), the Assessing Officer completed the assessment ex parte under section 147 read with section 144. The alleged investment was treated as unexplained investment under section 69 of the Act and taxed accordingly.
The assessee challenged the assessment before the Commissioner (Appeals). The Commissioner noted that the assessment had been completed ex parte solely due to non-compliance. Taking note of the proviso to section 251(1)(a), inserted with effect from 01.10.2024, the Commissioner set aside the assessment and restored the matter to the file of the Assessing Officer with a direction to make a fresh assessment after providing reasonable opportunity of being heard to the assessee.
