ABDUL HAKIM,KHURJA V. ITO, WARD 2(3)(1), BULANDSHAHAR, BULANDSHAHR

ITA 2989/DEL/2025

AI Insights

The case involves Abdul Hakim, an individual engaged in trading of terracotta pots and livestock, who appealed against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2018-19. The appeal was initially dismissed ex-parte by the CIT(A) due to non-compliance by the assessee with the notices issued. The Assessing Officer had earlier reopened the case under section 147 of the Income Tax Act, 1961, due to substantial cash deposits and withdrawals in the assessee's bank accounts, and completed the assessment under section 144 read with section 147, estimating the profit at 8% of the turnover. The Tribunal found it appropriate to restore the matter to the AO for a fresh assessment, considering the non-compliance issues raised by the assessee during both the assessment and appellate proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781267 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 03-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHA GUPTA
• Keywords: Set aside
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2989/िदʟी/2025(िन.व. 2018-19) ITA No.2989/DEL/2025 (A.Y.2018-19) Abdul Hakim C/o Adv. Arpit Agrawal, Gali No.2, Lalitraj Enclave, Murari Lal Ka Pench, Khurja, Uttar Pradesh 203131 PAN: ABGPH-1586-F ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Ward -2(3)(1), Aayakar Bhawan, Bulandshahr, Uttar Pradesh 203001 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Ms. Sudha Gupta, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 29/07/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 24/10/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 05.03.2025, for Assessment Year 2018-19. 2. The brief facts of the case are that the assessee is an individual engaged in trading of terracotta pots and livestock (buffaloes). The case was reopened u/s.147 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) based on information regarding substantial cash deposits and withdrawals in his bank accounts. Despite issuance of several statutory notices, the Assessing Officer (AO) observed non-compliance and completed the assessment u/s.144 r.w.s. 147 of Printed from counselvise.com 2 ITA No.2989/DEL/2025 (A.Y.2018-19) the Act. While completing assessment, the Assessing Officer rejected assessee’s books of account u/s.145(3) of the Act and estimated profit at 8% of the turnover of Rs.2,49,49,145/-. Thus, the AO determined total income of the assessee at Rs.19,95,932/-. Against the assessment order dated 26.02.2024, the assessee filed appeal before the CIT(A). The CIT(A) vide order dated 05.03.2025 (supra), dismissed appeal of the assessee ex-parte on the ground of non-compliance of notices issued to the assessee. 4. Ms. Sudha Gupta, representing the department, supported the orders of the lower authorities and submitted that the assessee was non-compliant during the assessment, as well as, in appellate proceedings, hence, the CIT(A) rightly dismissed appeal of the assessee. 5. Submissions made by ld. DR heard and orders of authorities below examined. The assessee during assessment proceedings filed submissions in part. In absence of detailed reply by the assessee, the AO invoked provisions of section 144 of the Act and completed the assessment making addition of Rs.19,95,932/- by estimating GP at 8%. In Fist Appellate proceedings as well the assessee failed to respond to notices dated 07.11.2024, 12.11.2024 and 10.12.2024. In the absence of any contrary material the CIT(A) upheld the assessment order. Considering entire facts of the case and in the interest of justice, I deem it appropriate to restore the matter back to AO for de novo assessment. 6. The AO shall serve notice to the assessee on the residential address available in the assessment order. The assessee shall respond to the notice served, without fail. Printed from counselvise.com 3 ITA No.2989/DEL/2025 (A.Y.2018-19) 7. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Friday the 24th day of October, 2025. Sd/- Sd/-/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 24/10/2025 NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "