DTC Trading CO Vs ITO (ITAT Chandigarh)
Chandigarh ITAT remands DTC Trading Co. tax appeal for fresh hearing, citing advocate’s depression and memory loss as sufficient cause for ex-parte order.
In a notable decision, the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, has set aside an ex parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] against DTC Trading CO, remanding the case for fresh adjudication. The Tribunal’s ruling, dated June 27, 2025, for Assessment Year 2017-18, was prompted by the assessee’s plea that their advocate’s severe medical condition—depression and memory loss—prevented effective representation.
The case originated from an assessment order passed by the Assessing Officer (AO) under Section 144 read with Section 143(3) of the Income Tax Act, 1961, on December 30, 2019. This order was issued ex parte due to incomplete compliance from the assessee. The AO had made significant additions to the assessee’s income, including Rs. 1,22,50,000/- as unexplained money under Section 69A read with Section 115BBE, and Rs. 31,73,100/- as unexplained cash credits under Section 68 read with Section 115BBE, for which no confirmations were filed. Consequently, the assessee’s income was assessed at Rs. 1,64,03,302/-.
DTC Trading CO subsequently filed an appeal before the CIT(A) through the same counsel, Advocate Ajay Pal Singh. However, this appeal also resulted in an ex parte order from the CIT(A) because no submissions were made on behalf of the assessee.
