Jagmohan Garg Vs DCIT (ITAT Chandigarh)
Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, on June 9, 2025, remitted a tax appeal involving Jagmohan Garg back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication. The appeal, pertaining to Assessment Year 2019-20, challenged an ex-parte order passed by the CIT(A) on September 29, 2023.
The assessee argued that both the Assessing Officer (AO) and the CIT(A) had passed ex-parte orders without properly verifying notice service or adjudicating the issues on their merits. The AO had made a high-pitched addition of ₹3,10,90,393 by applying a 5% net profit rate on total purchases and sales after rejecting the books of accounts.
The ITAT observed that both the AO’s assessment order under Section 144 of the Income Tax Act, 1961, and the CIT(A)’s appellate order were passed ex-parte, lacking any findings on the merits based on available material. The Tribunal concluded that the assessee was not provided an adequate opportunity of hearing.
The learned Departmental Representative did not object to the matter being remanded. Consequently, the ITAT decided to send the case back to the CIT(A) to pass a fresh order on merits, in accordance with the law, after affording due and adequate opportunity of hearing to the assessee. The assessee is directed to cooperate in the fresh proceedings. The appeal was allowed for statistical purposes.
