AKASH MALIK,NEW DELHI V. ASSESSING OFFICER, NEW DELHI

ITA 3/DEL/2025

AI Insights

The case involves Akash Malik, the appellant, who appealed against the order of the CIT(A)/NFAC, Delhi, which arose from an assessment order by the ITO, Ward 28(4), Delhi. The assessment for the year 2017-18 included an addition of Rs. 10,07,500 to the assessee's income, which was treated as unexplained expenditure under Section 69C of the Act. The AO had requested explanations regarding cash payments made towards credit card bills, which the assessee failed to provide. Despite multiple opportunities during the appellate proceedings, the assessee remained non-compliant, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 295060 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Corroborative evidences; Unexplained expenditure
• Section: 143(3); 69C

Judgement Text

"1 ITA No. 03/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI Ms. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 03/DEL/2025 Assessment Year: 2017-18 Akash Malik, B-32, Friends Colony west, Delhi-110065. PAN- ARBPM 7415 M Vs Assessing Officer, Ward-28(4), Delhi. APPELLANT RESPONDENT Assessee represented by None Department represented by Sh. Sanjay Kumar, Sr. DR Date of hearing 21.04.2025 Date of pronouncement 21.04.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal filed by the assessee is directed against the order dated 29.01.2024 passed by the Ld.CIT(A)/NFAC, Delhi [DIN & Order No. ITBA/NFAC/S/250/2023-24/1060213974(1)], arising out of the assessment order passed by the ITO, Ward 28(4), Delhi dated 29.11.2019 under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2017-18. 2 ITA No. 03/Del/2025 2. The matter was taken up on 16.04.2025 when the Ld. counsel for the assessee duly appeared and after hearing the matter for some time the matter was directed to be continued as part heard on 17.04.2025. On 17.04.2025 no one appeared on behalf of the assessee neither any adjournment was sought. The matter was directed to be continued on 21.04.2025 as part heard. On 21.04.2025 no one appeared on behalf of the assessee when the matter was taken up for hearing as part heard. Having no other alternative the Bench decided to finalize the appeal ex parte, qua the assessee. 3. Upon hearing the learned Sr. D.R. Shri Sanjay Kumar and upon perusal of the materials on record, including the orders passed by the Ld. CIT(A) and AO it appears that the assessee never complied with the directions of Ld. AO; neither any details or document was provided by the assessee in regard to the cash payment for credit card bills to the tune of Rs. 10,07,500/-. Hence, the Ld. AO passed ex parte order and added Rs. 10,07,500/- to the income of the assessee u/s 69C of the Act read with Section 115BBE. It further appears that before the Ld. CIT(A) on 4 occasions notices were duly served upon the assessee. However, none was complied with. Under these facts and circumstances of the matter, it is quite evident that the assessee is not at all interested in deciding the issue with regard to addition made by the AO and confirmed by the Ld. First Appellate Authority. Even before the Ld. CIT(A), the assessee not being represented before him, he decided 3 ITA No. 03/Del/2025 the matter on merit, deliberation whereof made at paragraphs 7.1 to 7.9 are in the following manner: “7.1 Brief facts of the case: The case was selected for Limited scrutiny for verification of issue – “ Large Cash Payment Made for credit Card Purchase.” Assessment was completed in the case of the appellant u/s 143(3) of the Act assessing income at Rs. 20,87,500/-. Addition of Rs. 10,07,500/- was made by the Assessing Officer (AO) u/s 69C of the Act. 7.2 The assessee had made payment in cash aggregating to Rs. 10,07,500/- towards payment of credit card bills. During the assessment proceedings, the AO asked the assessee to explain the source of expenditure incurred for payment of credit card bills. However, the assessee did not file explanation or submission regarding the issue. In absence of any explanation, the AO treated the payment in cash towards credit card bills as unexplained expenditure u/s 69C and added the same to the income of the assessee. 7.4 Further, on perusal of Form-35, it is seen that appellant has neither attached/uploaded any submission nor submitted evidences/ document/ explanation in support of facts and claim raised in grounds of appeal. Despite being given many opportunities, appellant did not respond during appellate proceeding nor furnished requisite details/explanations which were required to adjudicate the present appeal. 8. The appellant has been provided sufficient opportunities but appellant failed to submit any submission or evidence appeal proceedings in support of grounds of appeal as well as statement of facts and remained non- compliant, therefore, in view of the above facts, I am constrained to uphold the order of the AO, in absence of any supporting evidence, documents. 9. For statistical purposes, the appeal is treated as disposed off.” 4. Considering such findings made by the Ld. CIT(A) and also the observation made by the AO, which, in my considered view, is found to be just and proper, particularly in the absence of any assistance rendered by the assessee before the 4 ITA No. 03/Del/2025 Bench; the order passed by the Ld. AO and further confirmed by the Ld. First Appellate Authority is hereby affirmed. 5. The appeal preferred by the assessee is frivolous and hence dismissed. Order pronounced in open court on 21.04.2025. Sd/- (Ms. MADHUMITA ROY) JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "