BALAJEE INFRASHINE PRIVATE LIMITED,DELHI V. ITO WARD 4(1), NEW DELHI

ITA 1394/DEL/2024

AI Insights

The case involves Balajee Infrashine Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi, pertaining to the assessment year 2017-18. The appeal was directed against the assessment order under sections 147 r.w.s. 144B of the Income Tax Act, which included additions for unexplained cash deposits, withdrawals, and property purchases. The Assessing Officer had initially made these additions due to the absence of satisfactory explanations from the assessee regarding substantial cash transactions and property purchases. The CIT(Appeals) upheld most of these additions except for the issue of cash withdrawals, which was set aside for further verification. The Income Tax Appellate Tribunal (ITAT) found that the CIT(Appeals) should have provided a sufficient opportunity to the assessee and thus set aside the issues for fresh consideration by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26958 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Assessee Lawyers: SHRISAHIL WADHWA
• Keywords: Set aside
• Section: 147; 148; 69A

Judgement Text

" ITA No. 1394/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.1394/Del/2024 Assessment Year: 2017-18 Balajee Infrashine Private Limited, A-14, Jhilmil Colony, Delhi PIN: 110095 Vs. Income Tax Officer, Ward 4(1), New Delhi PAN :AAECM4085G (Applicant) (Respondent) ORDER PER NAVEEN CHANDRA: ACCOUNTANT MEMBER This appeal by the assessee is directed against the order dated 12.02.2024of the Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC) ,Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment year 2017-18 and arises out of the Assessee by ShriSahil Wadhwa,Advocate Respondent by Shri Ashish Tripathi, Sr.DR Date of hearing 13.02.2025 Date of pronouncement 27.02.2025 2 ITA No. 1394/Del/2024 assessment order dated 29.03.2022 under sections 147 r.w.s. 144Bof the IT Act, [hereinafter referred as ‘the Act’]. 2. The grounds taken by the assessee are as under: 1. That having regard to the facts and circumstances of the case, Ld. AO has erred in Law and on facts in making an assessment u/s. 147 of the Income Tax Act. 2. That having regard to the facts and circumstances of the case, Ld. AO has erred in Law and on facts in making an addition of Rs.4,92,34,000/- as follows, u/s. 69A of the Income Tax Act, 1961 and charging tax on same u/s. 115BBE of the Act. a. Purchase of Property : 1,50,44,000/- b. Cash Deposits: 1,36,70,000/- c. Cash Withdrawals: 2,05,20,000/- Total:4,92,34,000/- 3. That having regard to the facts and circumstances of the case, Ld. AO the action of the Ld. AO in charging interest u/s. 234A/B/C of the Income TaxAct is erroneous 4 That having regard to the facts and circumstances of the case, the action of the Ld. AO erred in initiating penalty proceedings u/s. 271AAC(1) and 271F of the Income Tax Act 3. The brief facts of the case are that the assessee is Private Limited Company and has not filed return of income under Section 139(1) of the Act. The Assessing Officer received an information that in the instant year, the assessee has deposited and withdrawn funds from 3 ITA No. 1394/Del/2024 the accounts from its own bank account. On the basis of information available, the Assessing Officer issued notice under Section 148 of the Act dated 31.03.2021. The assessee filed a return in response to notice u/s 148 on 27.12.2021 which was considered by the AO as non-est since it was filed beyond the due date. 4. The assessee, in the course of re-assessment proceedings stated that the company had a loss during the assessment year 2017-18 so the assessee has not filed the return. The assessee submitted bank statement, computation of income, balance sheet and P & L account. 5. In the course of reassessment proceeding, the Assessing Officer found that assessee had made a payment of Rs.1,50,44,000 for purchase of property from M/s. Rajpur Infratech Pvt. Ltd. It was also seen that the assessee had made cash deposits of Rs.1,36,70,000 and cash withdrawals of Rs.2,05,20,000 in his bank account with Punjab National Bank. The Assessing Officer sought details of the cash deposits and cash withdrawals as also for payment of purchase of property. In absence of any details coming from the assessee, the Assessing Officer added the entire amount of Rs.4,92,34,000 u/s69A and completed the assessment under Section 147 r.w.s. 144B of the Act. 4 ITA No. 1394/Del/2024 6. The assessee filed appeal before the Ld. CIT(Appeals) who directed the Assessing Officer to verify the source of cash withdrawals but confirmed the other two additions regarding cash deposits and payment for purchase of property. 7. Aggrieved, the assessee is also before us. The learned counsel vehemently stated that the Ld. CIT(Appeals) had no power to set aside the issue of cash withdrawals to the file of the Assessing Officer. The ld AR submitted that the power of the CIT(A) to set aside u/s 251(1)(a) was omitted by Finance Act,2001 w.e.f. 01.06.2001. It was also stated by the learned counsel that the Ld. CIT(Appeals) without giving any reason, upheld the other two additions made by the Assessing Officer only on the ground that no response to the show-cause-notice was furnished by the Assessing Officer. 8. Per contra, the Learned DR relied upon the orders of the authorities below. 9. We have heard the rival parties and perused the material available on record. We find that the Ld. CIT(Appeals) should have given sufficient opportunity to the assessee for deciding the issue before him. We are, therefore, of the view that in the interest of justice, the issues involved in the assessment be set aside for fresh consideration to the file of the Assessing Officer. The Assessing Officer 5 ITA No. 1394/Del/2024 is directed to give adequate opportunity to the assessee and decide the issue afresh. Needless to say that the assessee shall also furnish evidence and all relevant material including books of accounts etc. in support of its claim before the Assessing Officer to substantiate its case. Grounds of appeal of the assessee are allowed for statistical purposes. 10. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 17.02.2025. Sd/- Sd/- (ANUBHAV SHARMA) (NAVEEN CHANDRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27th February, 2025 Mohan Lal Copy forwarded to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "