BHISHM CHAUHAN,HARYANA V. INCOME TAX OFFICER WARD 1(2), FBD, FARIDABAD

ITA 3969/DEL/2024

AI Insights

The case involves three appeals filed by the appellant, Bhishm Chauhan, against the orders of the Learned Commissioner of Income-Tax (Appeals) and the Learned Assessing Officer for the assessment years 2016-17 and 2017-18. The appeals were primarily against the additions made to the appellant's income and the penalties imposed. The appellant had faced issues of non-compliance with notices during the assessment proceedings, leading to ex parte orders under Sections 144 and 271(1)(c) of the Income-Tax Act, 1961. The appellant sought condonation for a significant delay in filing appeals due to custody and mental health issues, which the Tribunal considered in their decision to set aside the previous orders and direct a reassessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 102951 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAVED AKHTAR
• Assessee Lawyers: YOGESH SHARMA
• Keywords: Condonation of delay; Set aside
• Section: 144; 142(1); 143(2); 250; 271(1)(c); 44AD

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 3969/DEL/2024 Assessment Year: 2016-17 ITA No. 3970/DEL/2024 Assessment Year: 2016-17 ITA No. 3971/DEL/2024 Assessment Year: 2017-18 Bhishm Chauhan, 255, Ward No.10, near General Chopal Jatoli, Hassanpur, Faridabad PIN 1211 07 PAN No. AOHPC1689J Vs. Income Tax Officer, Ward-1 (2), Faridabad Haryana (Appellant) (Respondent) O R D E R PER BENCH: The three appeals are filed by the appellant/assessee. In ITA Nos. 3969/Del/2024 and 3970/Del/2024 are against order dated 30.06.2024 passed by Learned Commissioner of Income- Tax(Appeals)/National Faceless Appeal Centre(NFAC), Delhi (hereinafter referred as ‘Ld. CIT(A)’) under Sections 250 of the Income-Tax Act, 1961 (hereinafter referred as “the Act”) arising out of assessment order and penalty order dated 29.12.2018 and Assessee by: Shri Yogesh Sharma, Adv. Department by: Shri Javed Akhtar, CIT (DR) Date of Hearing: 26.03.2025 Date of pronouncement: 26.03.2025 ITA Nos.3969, 3970 & 3971/Del/2024 2 28.06.2019 of the Learned Income Tax Officer, Ward No. 1(1), Faridabad (hereinafter referred as “Ld. AO”) under Section 144 of the Act and 271(1)(c) of the Act respectively. ITA No.3971/Del/2024 is against order dated 30.06.2024 of Learned Commissioner of Income-Tax(Appeals)/National Faceless Appeal Centre(NFAC), Delhi (hereinafter referred as “Ld.CIT(A)”) arising out of order dated 15.12.2019 of the Income Tax Officer, Ward- 1(5), Faridabad (hereinafter referred as “Ld. AO”) under Section 144 of the Act for assessment year 2017-18. 2. Brief facts of the case in ITA No. 3969/Del/2024 are that the appellant/assessee filed return of income on 01.11.2017 declaring income of Rs.3,36,300/-. The case was selected for complete scrutiny through CASS. Notice under Section 143(2) of the Act was issued on 09.08.2018. Notices under Section 142(1) along with certain queries were issued on 06.12.2018. No compliance was made by the assessee. As per section 144 of the Act, Ld. AO vide order dated 29.12.1018 made additions of Rs.9,31,000/- and Rs.21,02,250/- for assessment year 2016-17. 3. As per ITA No.3970/Del/2024, separate penalty proceedings initiated as per order dated 29.12.2018, lead to passing of ITA Nos.3969, 3970 & 3971/Del/2024 3 penalty order dated 28.06.2019 by the Ld. A.O under Section 271(1)(c) of the Act for the assessment year 2016-17. 4. Regarding ITA No.3971/Del/2024, Ld. AO passed assessment order dated 15.12.2019 and made addition of Rs.14,60,000/- for assessment year 2017-18. 5. The appellant/assessee against assessment order dated 29.12.2018, penalty order dated 28.06.2019 for assessment year 2016-17 and assessment order dated 15.12.2019 of Ld. AO preferred appeals with applications for condonation of delay of 1716 days in filing before Ld. CIT(A). Vide order dated 30.06.2024, Ld. CIT(A) dismissed the applications for condonation of delay of 1716 days in filing appeals and appeals. 6. Being aggrieved, the appellant/assessee preferred present appeals. 7. At the time of hearing, Learned Authorised Representative for the appellant/assessee submitted one application in ITA Nos.3969/Del/2024 and 3970/Del/2024 and another application in ITA No.3971/Del/2024 both dated 24.03.2024. In applications, it is stated that the delay in filing appeals be condoned considering the custody and mental health conditions, ITA Nos.3969, 3970 & 3971/Del/2024 4 ex parte orders under Section 144 of the Act may be set aside and Ld. AO be directed to compute income at 8% of total incomes for AYs 2016-17 and 2017-18. 8. Learned Authorised Representative for the Revenue submitted that the appellant/assessee had failed to assist the departmental authorities. 9. From examination of records in the light of aforesaid rival submissions, it is crystal clear that appellant/assessee had failed to comply with the several notices during the assessment proceedings. Ld. AO vide order dated 29.12.2018 made additions of Rs. 9,31,000/- and Rs.21,02,250/- on a total income of Rs.43,00,550/- for AY 2016-17. Further, Ld. AO passed penalty order dated 28.06.2019 for AY 2016-17. Similarly, Ld. AO vide order dated 15.12.2019, made addition of Rs.14,60,000/- in total income of Rs.17,46,580/- for AY 2017-18. Ld. CIT(A) vide order dated 30.06.2024 dismissed the applications for condonation of delay of 1716 days in filing appeals. 10. The Appellant/assessee claims that due to custody and mental illness, he could not file appeals within period of ITA Nos.3969, 3970 & 3971/Del/2024 5 limitation. In applications dated 24.03.2024, appellant/assessee requested condonation of delay in filing appeals due to custody and mental health, setting aside ex parte order under Section 144 of the Act and reassessment income as per section 44AD of the Act and to compute total income at 8% of Rs.43,00,550/- and Rs.17,86,580/- for AYs 2016-17 and 2017-18 respectively. 11. In view of above material facts, in the interest of justice, it is considered expedient to set aside the impugned orders dated 30.06.2024 of Ld. CIT(A) and dated 29.12.2018, 28.06.2019 and 15.12.2019 of Ld. AO for AYs 2016-17 and 2017-18. Ld. AO is directed to pass a fresh orders in accordance with law for AYs 2016-17 and 2017-18. The penalty order being consequential is set aside. 12. In the result, ITA Nos.3969/Del/2024 and 3971/Del/2024 are partly allowed for statistical purposes and ITA No. 3970/Del/2024 is allowed. Order pronounced in the open court on 26/03/2025. Sd/- Sd/- (BRAJESH KUMAR) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15/04/2025 Mohan Lal ITA Nos.3969, 3970 & 3971/Del/2024 6 Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "