BRAHAM SINGH,FARIDABAD V. INCOME TAX OFFICER, FARIDABAD

ITA 3942/DEL/2024

AI Insights

The case involves two appeals by the assessee, Braham Singh, against the orders of the National Faceless Appeal Centre, Delhi, concerning the assessment order and the levy of penalty for the Assessment Year 2017-18. The Assessing Officer had added income amounting to Rs. 1,56,08,342 as it was alleged that the income had escaped assessment. The CIT(A) dismissed the appeal on grounds of non-payment of advance tax and non-filing of return. The assessee contended that the notices were sent to a wrong email address, leading to non-receipt of the notices. The Tribunal found merit in the assessee's contention and restored the matter for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38136 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUNEESH RAJANI
• Assessee Lawyers: SHYAM SUNDER MANGLA
• Keywords: Opportunity of being heard; Principle of natural justice; TDS
• Section: 147; 148; 144; 194A; 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘A’: NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA Nos.3940 & 3942/Del/2024 [Assessment Year: 2017-18] Braham Singh, H. No.218, Near Panchayat Ghar, Mujeri, Vijay Nagar, Sagarpur, B.O. Faridabad, Haryana-121001 Vs Income Tax Officer/National Faceless Appeal Centre, Delhi PAN-DNMPS9977Q Assessee Revenue Assessee by Shri Shyam Sunder Mangla, CA Revenue by Shri Muneesh Rajani, DR Date of Hearing 19.03.2025 Date of Pronouncement 19.03.2025 ORDER PER BRAJESH KUMAR SINGH, AM, These two appeals by the assessee are directed against the two orders of National Faceless Appeal Centre, Delhi, both dated 29.06.2024, arising out of assessment order u/s 147 r.w.s. 144 r.w.s. 144B of the Act dated 27.03.2022 pertaining to Assessment Year 2017-18 and levy of penalty u/s 271AAC of the Act dated 02.09.2022 respectively. Since, both appeals have common issues and therefore they were heard together and are disposed of by this common order. ITA No.3940/Del/2024 2. Grounds of appeal raised by the assessee in ITA No.3940/Del/2024 are as under:- 2 ITA No.3940 & 3492/Del/2024 Ground No. 1 That having regards to the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming the impugned order of Addition of Income amounting to Rs. 75,00,000/- under Section 69A. Ground No. 2 That having regards to the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming the impugned order of Addition of Income amounting to Rs. 81,08,342/- under Section 69A. Ground No. 3 That having regards to the facts and circumstances of the case, the Ld. CIT(A) has erred in admitting the appeal considering the impact of section 249(4)(b), 234B and 208. Ground No. 4 That having regards to the facts and circumstances of the case, the Ld. CIT(A) has erred in not considering the following grounds of first appeal: Ground No:-3 of First Appeal That having regards to the facts and circumstances of the case, The Ld. AO has erred in serving of notice u/s 148 as per the provisions of sec 282 read with rule 127. Ground No:-4 of First Appeal That having regards to the facts and circumstances of the case, The L.d. AO has erred in serving of notices u/s 142(I) during assessment proceedings as per the provisions of see 282 read with rule 127. Ground No:-5 of First Appeal That having regards to the facts and circumstances of the case, The Ld. AO has erred in serving of notice u/s 156 during assessment proceedings as per the provisions of sec 282 read with rule 127. Ground No. 5 That the Ld. CIT(A) has not afforded proper opportunity to the appellant to explain the matter and whole order is arbitrary and against the principles of natural justice. Ground Ne. 6 That in any view of the matter and in any case the order under appeal is bad in law and against the circumstances of the case. Ground No. 7 That the appellant craves leave to add, modify, or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. 3 ITA No.3940 & 3492/Del/2024 3. Brief facts of the case:- In this case, the Assessing Officer had information that the assessee had purchased time deposit of Rs.75 lakhs with Oriental Bank of Commerce and further an amount of Rs.81,08,342/- was credited in the assessee’s account u/s 194A of the Act on which TDS was deducted during financial year 2016-17 relevant to AY 2017-18. Further, as per the information available with the Assessing Officer, the assessee had not filed his return of income for AY 2017-18. Accordingly, the Assessing Officer noted that the income to the extent of Rs.1,56,08,342/- (75,00,000/- + 81,08,342/-) chargeable to tax had escaped assessment. Accordingly, notice u/s 148 of the Act was issued by him to the assessee on 27.03.2021. According to the Assessing Officer, the assessee did not file his return of income in response to notice u/s 148 of the Act and also the assessee did not appear during the assessment proceedings and therefore, the assessment was completed u/s 144 of the Act by the Assessing Officer by making above the two additions totalling to Rs.1,56,08,342/-. 4. Aggrieved with the said order, the assessee filed an appeal before the ld. CIT(A). The Ld. CIT(A) noted that the assessee had not paid an amount equal to advance tax which was due on its income and the assessee had also not requested for exemption from operation of the provisions of clause (b) of sub-section (4) of section 249 of the Act. The ld. CIT(A) held that since the assessee had not filed his return of income and also did not pay the amount equal to the amount of advance tax which was payable by it and therefore the present appeal was not liable to be 4 ITA No.3940 & 3492/Del/2024 admitted and treating the appeal as infructuous, dismissed the appeal of the assessee. 5. Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before us. 6. The Ld. AR submitted that notices issued by the Department were to a wrong e-mail address and therefore notice of the Assessing Officer was not received by the assessee and therefore requested that the matter may be restored back to the file of the Assessing Officer. 7. The Ld. Sr. DR supported the orders of the authorities below. 8. We have heard the rival submission and perused the material available on record. As submitted by the ld. Counsel for the assessee that he had not received any notice issued by the Assessing Officer as the notice was sent to wrong e-mail address. In view of the above facts and in the interest of justice, we are of the considered view that one more opportunity should be given to the assessee to present his case before the Assessing Officer. We, therefore, set-aside the order of the Ld. CIT(A) and assessment order and restore the matter to the file of the Assessing Officer for de novo passing of the assessment order as per law. Needless to the say the Assessing Officer will give proper opportunity to the assessee and pass the order in accordance with law. 9. In the result, the appeal of the assessee is allowed for statistical purposes. 5 ITA No.3940 & 3492/Del/2024 ITA No.3942/Del/2024 (Penalty Appeal) 10. Since we have already adjudicated the quantum appeal, in ITA No.3940/Del/2024 for Assessment Year 2017-18 and restored the issue to the file of the AO, therefore, the penalty appeal is also set-aside to the file of the AO. The AO is directed to adjudicate the issue afresh in accordance with law after affording reasonable opportunity of being heard to the assessee. 11. Finally, both appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 19th March, 2025. Sd/- Sd/- [VIMAL KUMAR] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 19.03.2025 f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, "