DCIT, CENTRAL CIRCLE, GHAZIABAD, GHAZIABAD V. IMRAN, BULANDSHAHR

ITA 2/DEL/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (Dy. CIT) against Shri Imran, concerning the assessment year 2020-21. The Revenue challenged the CIT(A)'s decision to set aside the assessment made under section 144 of the Income Tax Act, 1961, due to non-compliance by the assessee with statutory notices. The CIT(A) had directed a fresh assessment, citing the Assessing Officer's failure to adequately address the non-compliance issues. The Tribunal, after hearing the Department's representative and reviewing the materials, decided not to interfere with the CIT(A)'s decision, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775097 (ITAT-DELHI)
• Duration Of Justice: 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 01-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: ISSUING NUMBER OF STATUTORY
• Keywords: Set aside; Bogus purchase; Bogus
• Section: 144; 142(1); 68

Judgement Text

"Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘A’ BENCH, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 2/DEL/2025 [A.Y 2020-21] The Dy. C.I.T. Vs. Shri Imran Central Circle Hapur Chungi, Ghaziabad Ghaziabad PAN: AGNPI 7329 D (Appellant) (Respondent) Assessee By : None Department By : Shri Jitender Singh, CIT-DR Date of Hearing : 20.08.2025 Date of Pronouncement : 20.08.2025 ORDER PER NAVEEN CHANDRA, AM :- This appeal by the Revenue is directed against the order of the ld. CIT(A)-3, Noida dated 18.10.2024 pertaining to A.Y 2020-21. 2. The grievances raised by the Revenue reads as under: “1. That the appellant craves leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. Printed from counselvise.com ITA No. 2 /DEL/2025 Dy. CIT Vs. Imran [A.Y 2020-21 Page 2 of 5 2. Whether on facts and circumstances of the case and in law, Ld. CIT(A)-3, Noida has erred while setting aside the case, without there being any reasonable ground as brought on record for non- compliance by the assessee during the assessment proceedings. 3. Whether on facts and circumstances of the case and in law, Ld. CIT(A)-3, Noida has erred in setting aside the case disregarding the facts that final show cause notice which is an important notice that provides the assessee to respond to the AO's on proposed findings and additions. Failure on the part of the assessee in responding the statutory notices without any reasonable grounds has resulted the assessment u/s 144 of the Act on the basis of best judgement and material available on record. 4. Whether on facts and circumstances of the case and in law, Ld. CIT(A)-3, Noida has erred in setting aside the case and referring back to the file of the Assessing Officer for making fresh assessment as per provisions of law and in observing that no separate adjudication is required to be made on various grounds of appeal, without appreciating the fact that the Assessing Officer while making the assessment has provided sufficient opportunities of being heard to the assessee by issuing number of statutory notices including final show cause notice dated 22.09.2021.” 3. In this case assessment proceedings were completed u/s 153C r.w.s. 144 of the Income Tax Act, 1961. The Assessing Officer in the assessment order observed that notice u/s 143(2) was issued on 28.06.2021 but no compliance was made and further notices u/s 142(1) Printed from counselvise.com ITA No. 2 /DEL/2025 Dy. CIT Vs. Imran [A.Y 2020-21 Page 3 of 5 were issued on 12.02.2021 & 09.09.2021 but again no compliance was made. The Assessing Officer has further observed that show cause notice was issued to the assessee on 22.09.2021 but again no compliance was made. Therefore, the Assessing Officer proceeded to make addition of Rs. 7,39,100/- on account of unexplained cash, Rs. 15,18,683/- on account of commission earned and protective addition of Rs. 15,18,68,305/- on account of bogus purchase u/s 68 of the Act in the hands of the assessee and the case was assessed u/s 144 of the Act. 4. Aggrieved, the assessee went in appeal before the ld. CIT(A). 5. After considering the facts and submissions, the ld. CIT(A) referred to section 251(1) of the Act which reads as under: “Section 251(1)(a) amended with effect from 01.10.2024 reads as under:- 251. (1) In disposing of an appeal, the Commissioner (Appeals) shall have the following powers- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment [Provided that where such appeal is against an order of assessment made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment]” 6. Thereafter, the ld. CIT(A) came to a conclusion and held as under: Printed from counselvise.com ITA No. 2 /DEL/2025 Dy. CIT Vs. Imran [A.Y 2020-21 Page 4 of 5 “In accordance with the powers granted under section 251(1)(a), the assessment in the case under consideration is set aside with direction to the AO to make a fresh assessment as per provisions of law. Accordingly, the assessment is set-aside. As the matter has been set-aside; no separate adjudication is required to be made on various grounds of appeal.” 7. None appeared on behalf of the assessee. We proceeded to decide ex-parte qua the assessee. 8. We have heard the submissions of the ld DR and have perused the relevant material on record. At the very outset, we find that the ld. CIT(A) has set aside the case to the file of the Assessing Officer as the Assessing Officer has made assessment u/s 144 of the Act on the basis of his best judgment and material available on record. In such a situation the CIT(A) has invoked his powers u/s 251(1)(a) of the Act. We find no reason to interfere with the decision of the ld. CIT(A). Accordingly, we dismiss the grounds raised by the Revenue. 9. In the result, appeal of Revenue in ITA No. 2/DEL/2025 is dismissed. Order pronounced in open court on 20.08.2025. Sd/- Sd/- [SATBEER SINGH GODARA] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 1st SEPTEMBER, 2025. Printed from counselvise.com ITA No. 2 /DEL/2025 Dy. CIT Vs. Imran [A.Y 2020-21 Page 5 of 5 VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website 8. Date of uploading, in not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent/O.S. for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "