AIJAZ ALI,NEW DELHI V. DY. COMMISSIONER OF INCOME TAX, NEW DELHI

ITA 460/DEL/2025

AI Insights

The case involves Aijaz Ali, an interior designer, who was found in possession of Rs. 20,00,000 in cash at Indira Gandhi International Airport, New Delhi, which was seized by the authorities. The assessee initially claimed the cash was for professional services rendered, but later disowned it, claiming it belonged to another individual, Altaf Hussain. Due to inconsistencies in his statements and failure to provide documentary evidence supporting his claims, an addition of Rs. 19,83,800 was made to his income as unexplained cash under section 69A read with section 115BBE of the Income Tax Act, 1961. The CIT(A) passed an ex-parte order due to the assessee's non-compliance with notices, leading to the current appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669515 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN KUMAR; THROUGH VC
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER& SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER आअसं.460/िदʟी/2025(िन.व. 2021-22) ITA No.460/DEL/2025 (A.Y.2021-22) Aijaz Ali, Dwarka Sector-1, Amberhai, South West Delhi, Delhi 110075 PAN: CVIPA-1965-R ...... अपीलाथᱮ/Appellant बनाम Vs. Deputy Commissioner of Income-Tax, Circle Circle-28, New Delhi 110075 .....ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by: None ŮितवादीȪारा/Respondent by: Shri Shravan Kumar, CIT(DR) (Through VC) सुनवाई कᳱ ितिथ/ Date of hearing : 23/06/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : 23/06/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals)-29, New Delhi (hereinafter referred to as 'the CIT(A)') dated 04.12.2024, for assessment year 2021-22. 2. Shri Shravan Kumar, representing the department submitted that on 18.12.2020 cash Rs.20,00,000/- was seized from the assessee at Terminal-3, Indira Gandhi International Airport, New Delhi. During the course of assessment proceedings, the assessee was asked to explain the source of cash. The assessee submitted that he is a Interior Designer and the cash in his possession is 2 ITA No.460/DEL/2025 (A.Y.2021-22) consideration received by him for his professional services during April 2020 to 15th December 2020. However, in support of his submissions no documentary evidence was furnished by him. Thereafter, the assessee changed his statement and disowned the cash stating it to be money belonging to one Altaf Hussain. Since, the assessee was inconsistent in his statement and failed to furnish source of cash in his possession, addition of Rs.19,83,800/- on account of unexplained cash was made in the hands of assessee, under the provisions of section 69A r.w.s. 115BBE of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). The ld. DR further pointed that in appeal before the CIT(A), the assessee did not appear despite repeated notices. Hence, the CIT(A) was constrained to pass an ex- parte order. 3. We have heard the submissions made by ld. DR and have examined the orders of authorities below. This appeal by the assessee is directed against an ex- parte order of the CIT(A). A perusal of the impugned order reveals that the CIT(A) had issued five notices to the assessee i.e. on 26.08.2022, 03.11.2022, 21.06.2024, 10.07.2024 and 21.11.2024. On the initial two dates, the assessee sought adjournment. However, on the subsequent dates there was no compliance by the assessee. The CIT(A) decided appeal of the assessee in ex-parte proceedings. After considering entire facts of the case, in the interest of justice we deem it appropriate to restore this appeal back to the CIT(A) for denovo adjudication after affording reasonable opportunity of hearing to the assessee, in accordance with law. 4. The assesee is directed to comply with the notice(s) issued by the CIT(A), without fail. 3 ITA No.460/DEL/2025 (A.Y.2021-22) 5. 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 Monday the 23rd day of June, 2025. Sd/- Sd/- (BRAJESH KUMAR SINGH) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 23/06/2025 NV/- ᮧितिलिप अᮕेिषतCopy 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 "