SPA Soaps & Surfactants Vs DCIT (ITAT Chandigarh)
The appeal concerned an assessment for AY 2017–18, where the Assessing Officer made an addition of ₹20.31 lakh as unexplained cash deposits under a best-judgment assessment framed under Sections 144 and 147. The Commissioner of Income Tax (Appeals) dismissed the assessee’s appeal at the threshold, citing a delay of 207 days and refusing to condone it. The assessee appealed to the ITAT, arguing that the matter should be decided on merits and asserting readiness to substantiate its case. Considering the principles of natural justice and the length of the delay, the Tribunal accepted the assessee’s request and condoned the delay. The ITAT restored the matter to the CIT(A) for de novo adjudication on merits and directed that the issue of delay should not be raised again. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 08-08-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 read with Section 147 of the Act on 09-05-2023. In the assessment order, Ld. AO made addition of cash deposit for Rs.20.31 Lacs. The Ld. CIT(A) dismissed the appeal in limine for want of condonation of delay of 207 days. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is adjudication of appeal on merits which has been opposed by Ld. Sr. DR. The Ld. AR has stated that the assessee is able to substantiate its case on merits. The Ld. AR also raised pertinent legal grounds.
