AMAN ARORA,NEW KRISHNA PARK V. INCOME TAX OFFICER, CIVIC CENTRE

ITA 1736/DEL/2024

AI Insights

The case involves Aman Arora, the appellant, who contested an addition of Rs. 8,50,000 to his income for the assessment year 2017-18, which was deemed as unexplained cash deposits under section 69A of the Income Tax Act. The initial assessment was made ex parte under section 144, and the appeal to the Commissioner of Income Tax (Appeals) was also dismissed ex parte. The appellant filed the current appeal with a significant delay, citing lack of knowledge and resources due to the COVID-19 pandemic and reliance on a semi-qualified accountant. The ITAT found reasonable cause for the delay and admitted the appeal, restoring the matter to the Assessing Officer for a detailed examination of the cash flow statement and other evidence provided by the appellant.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 43529 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANDEEP PANWAR
• Assessee Lawyers: SATYAJEET GOEL
• Keywords: Condonation of delay; Reasonable cause
• Section: 144; 69A

Judgement Text

"I.T.A.No.1736/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.1736/Del/2024 िनधा\tरणवष\t/Assessment Year: 2017-18 AMAN ARORA A-25, New Krishna Park, Delhi. बनाम Vs. Income Tax Officer, Civic Centre, Ward 70(5), Delhi. PAN No.ADTPA4999E अपीलाथ\u0012 Appellant \u0014\u0015यथ\u0012/Respondent िनधा\u0007\bरतीक\rओरसे /Assessee by Shri Satyajeet Goel, Adv. and Shri Rajat Garg, Adv. राज\u0012वक\rओरसे /Revenue by Shri Mandeep Panwar, Sr. DR सुनवाईक\rतारीख/ Date of hearing: 10.01.2025 उ\u0018ोषणाक\rतारीख/Pronouncement on 24.01.2025 आदेश /O R D E R This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi dated 27.03.2023 for the AY 2017-18 arising out of assessment order passed u/s 144 of the Act. 2. Ld. Counsel for the assessee submits that this appeal is filed with delay of 325 days and the assessee has filed petition for condonation of delay along with affidavit explaining the reasons for I.T.A.No.1736/Del/2024 2 the delay in filing and prayer for condoning the delay. Ld. Counsel for the assessee referring to the petition filed for condoning the delay submitted that assessee is a lay man having no knowledge of Income tax proceedings and with the help of professional filed his return of income on 13.11.2017 declaring income of Rs.7,43,150/-. The case was selected for scrutiny and best judgment assessment was made u/s 144 making an addition of Rs.8,50,000/- u/s 69A of the Act on account of unexplained cash deposits in the bank account. The assessee filed appeal before the Ld.CIT(Appeals) and the appeal was dismissed ex parte on 27.03.2023 and the assessee filed appeal before the Tribunal on 13.04.2024 with the delay of 325 days. 3. It is the submission of the assessee that he is a lay man having no knowledge of Income tax appeal proceedings and was dependent on semi qualified accountant to look after his matters and also since the assessee incurred huge losses during Covid period he could not afford the services of a qualified professional for handling his tax matters. It is the submission of the assessee that the proceedings before the CIT(A) were conducted through faceless mode and in the absence of proper advice the appeal got dismissed ex parte and the assessee was not served with any notice physically and he was not I.T.A.No.1736/Del/2024 3 aware of the proceedings which was on before the Ld.CIT(Appeals). Therefore, it is the submission of the assessee that the delay in filing the appeal is neither willful nor wanton but for the circumstances beyond his control and knowledge. The assessee also filed affidavit explaining the reasons for the delay. 4. On going through the delay condonation of petition and the affidavit filed by the assessee I am of the view that there is reasonable cause in delay in filing the appeal before the Tribunal. The assessee has properly explained the delay and the delay is deserves to be condoned. Thus, the delay in filing of appeal is condoned and the appeal is admitted. 5. Ld. Counsel for the assessee submits that the solitary issue involved in the present appeal is in respect of addition made towards cash deposits of Rs.8,50,000/- u/s 69A of the Act. Ld. Counsel submits that these cash deposits were made out of withdrawals from bank account and cash on hand as is evident from the cash flow statement furnished by the assessee which is placed at page 4 of paper book. Ld. Counsel submits that as the assessment was completed ex parte assessment 144 of the Act and the issue involved being of factual in nature it is requested that the appeal be restored to the file of the Assessing Officer for fresh I.T.A.No.1736/Del/2024 4 adjudication after examining the cash flow statement and the relevant documents thereon and it is the submission of the Ld. Counsel that the appellant undertakes make proper compliance before the Assessing Officer. 6. The Ld. DR has no serious objection in restoring the matter back to the file of the Assessing Officer for examination of the evidences and deciding the matter afresh. 7. Heard rival submissions. On perusal of the assessment order as well as Ld. CIT(Appeals) order it is noticed that both the orders were passed ex parte. The assessee furnished cash flow statements stating that the cash deposits were made out of cash in hand and from the withdrawals made from the bank account. Considering the submissions and the cash flow statement this addition is restored to the file of the Assessing Officer for fresh adjudication and in accordance with law after examining the contention of the assessee and taking on record the evidences that the assessee may lead in this regard. The Assessing Officer shall given an opportunity of being heard to the assessee and decide the issue afresh in accordance with law. I.T.A.No.1736/Del/2024 5 8. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 24/01/2025 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 24.01.2025 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi "