AMAR DEEP GUPTA HOUSE NO 50 DAKKI SARAJIAN PEER MITHA JAMMU,JAMMU V. INCOME TAX OFFICER WARD 2(1) JAMMU PANAMA CHOWK JAMMU, JAMMU

ITA 4/ASR/2025

AI Insights

The case involves Amardeep Gupta, the appellant, who contested the additions made to his income by the Income Tax Officer (ITO), Ward 2(1), Jammu, for the assessment year 2017-18. The additions included Rs. 22.11 lakhs for deposits made during the demonetization period and Rs. 10.39 lakhs as estimated business profits. The First Appellate Authority dismissed the appeal without merit adjudication, citing lack of supporting documents for the business activities claimed by the assessee. The tribunal found that the assessee had submitted a return in response to a notice under section 142(1) of the Income Tax Act, which was not acknowledged by the ITO or the First Appellate Authority. Consequently, the tribunal remanded the case for a thorough examination of all documentary evidences and proper adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786799 (ITAT-AMRITSAR)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 02-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS
• Assessee Lawyers: P. N. ARORA
• Section: 144; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE SH. MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER (Hybrid Hearing) I.T.A. No. 04/Asr/2025 Assessment Year: 2017-18 Amardeep Gupta, C/o Sh. P. N. Arora, Advocate, 3rd Floor SRK Mall, 14- Kennedy, Avenue Mall Road, Amritsar. [PAN:-ALCPG6601L] (Appellant) Vs. ITO, Ward 2(1), Jammu. (Respondent) Appellant by Sh. P. N. Arora, Adv Respondent by Sh. Charan Dass, Sr. DR Date of Hearing 15.10.2025 Date of Pronouncement 21.11.2025 ORDER Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT (A), NFAC, Delhi, passed u/s 250 of the Act, 1961 vide order dated 10.12.2024 which has emanated from the order of AO, Ward 2-(1), Jammu, passed u/s 144 of the Act, vide order dated 26.11.2019. Printed from counselvise.com I.T.A. No. 04/Asr/2025 Assessment Year: 2017-18 2 2. The assessee has taken nine grounds of appeal in Form No. 36 and all of them relates to the issue of addition of Rs.22.11 lakhs being the deposit of SBN in bank account and addition of Rs.10.39 lakhs on account of estimated profits determined by the AO @ 8% on bank deposits. 3. Brief facts emerging from records are that the assessee has deposited an amount of Rs.22.11 lakhs (being SBN) in J & K Bank A/c No. xxxxxx12174 and has made a further deposit of Rs.1.29 crores for the entire financial year including the demo period. 3.1 In absence of any return on record notices were issued u/s 142(1) of the Act and on account of non-compliance to such notices and in absence of any response to various correspondence issued from the department, the assessment has been completed ex parte on a total income of Rs.32.50 lakhs (with an addition of Rs.22.11 lakhs on account of SBN deposit and an addition of Rs.10.39 lakhs on account of estimated business profits). 4. The matter carried in appeal before the ld. First appellate authority has been dismissed without adjudication on the merits of the case, by observing that written submissions filed in course of appellate proceedings, narrating the fact that the assessee was carrying on business in readymade garments under the trade name of Radhey Shyam Garments are without any supporting documents to prove existence Printed from counselvise.com I.T.A. No. 04/Asr/2025 Assessment Year: 2017-18 3 of his business activity, such as shop license, trade license, purchase and sale register/ invoices and no books of account has been produced by the assessee at any stage. 4.1 It is further observed by the ld. First appellate authority that in absence of any computation of income, and in absence of any documentary evidences, the cash deposits in bank account during demonetisation period could not be satisfactory explained by the assessee, resulting in dismissing of the appeal. 5. Before tribunal, the assessee has filed a short paper book containing copies of reply filed before the ld. first appellate authority, and has submitted that return of income has been filed by the assessee in response to notice u/s 142(1) on 5th May, 2018 disclosing a total income of Rs.4,24,210/- but the said return has not been given any cognizance by the AO. 5.1 The ld. AR of the assessee further agitated that no notice u/s 143(2) has been issued, in response to such return, and he further referred to screen shot taken from the portal to submit that full response to notice u/s 142(1) has been filed but it has not been considered by the AO. He further submitted that the ld. First appellate authority was not justified in confirming the addition without considering all the documentary evidences submitted, in course of appellate proceedings as evident Printed from counselvise.com I.T.A. No. 04/Asr/2025 Assessment Year: 2017-18 4 from the e-assessment portal and he prays that all these documentary evidences should be considered alongwith the computation of income for proper adjudication. 6. The ld. DR relied on the order of the ld. CIT(A) but has no objection if the matter is remanded back to the file of the ld. CIT(A) for fresh adjudication after considering all documentary evidences. 7. We have heard the rival submission and considered the materials on record and we find that the assessee has submitted a return on 5th May, 2018 in response to notice u/s 142(1) as evident from the screen shot enclosed in paper book (page nos. 10 and 11), but no cognizance of the said return has been given by the AO at the time of framing the assessment and there is no observation in respect of the same by the ld. CIT(A) in his appellate order. 7.1 Moreover, we also note that full documentary evidences like cash book, purchase invoice, sales invoices, and other relevant documents relating to existence of business has not been filed by the assessee before the ld. AO. 7.2 As such, we are of the opinion that interest of justice will be served if the matter is remanded back to the file of the ld. First appellate authority for adjudication on all the grounds contained in form 35 on merits of the case after examining the documentary evidences available before him and also taking into consideration the Printed from counselvise.com I.T.A. No. 04/Asr/2025 Assessment Year: 2017-18 5 return of income filed by the assessee (if properly verified) and the assessee is also directed to file all documentary evidences in support of his case and to fully cooperate in the appellate proceedings. Necessary report may be obtained by the ld. First appellate authority from the AO as per provisions of law, in respect of fresh evidence if any. 8. We have not expressed any opinion on merits of the case and all legal issues are left open. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 21.11.2025 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (UDAYAN DASGUPTA) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order Printed from counselvise.com "