DEEPAK COMMUNICATION,AJIT NAGAR V. ASSESSING OFFICER, DELHI

ITA 3076/DEL/2025

AI Insights

The case involves Deepak Communication, which appealed against an ex-parte penalty order by the Commissioner of Income Tax (Appeals) for the Assessment Year 2017-18. The penalty was levied under section 271AAC(1) of the Income Tax Act, 1961, amounting to Rs.1,04,674, following the deposit of Rs.13,55,000 during the demonetization period in 2016. The Assessing Officer added this amount to the assessee's income under section 69A read with section 115BBE of the Act, and initiated penalty proceedings. The Income Tax Appellate Tribunal found the earlier proceedings to be ex-parte and restored the matter to the CIT(A) for a fresh hearing, ensuring the assessee's right to a fair opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782132 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 08-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHA GUPTA

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.3076/िदʟी/2025 (िन.व. 2017-18) ITA No.3076/DEL/2025 (A.Y. 2017-18) Deepak Communication, Gali No.4, Ajit Nagar, Gandhi Nagar, Delhi 110031 ...... अपीलाथᱮ/Appellant PAN: AAMFD-3905-A बनाम Vs. Assessing Officer, Ward-60(6), Delhi 110002 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/Appellant by : None ŮितवादीȪारा/Respondent by : Ms. Sudha Gupta, Sr.DR सुनवाई कᳱ ितिथ/ Date of hearing : 31/07/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 27/10/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 08.09.2023, for Assessment Year 2017-18. 2. The solitary issue, in the present appeal by the assessee is against levy of penalty u/s.271AAC(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) amounting to Rs.1,04,674/-. The assesssee had deposited cash amounting to Rs.13,55,000/- during demonetization period i.e. between 09.11.2016 to 30.12.2016 in his bank account maintained with Yes Bank Ltd. Krishna Nagar Delhi, account no. 226190000295. The return of income was filed Printed from counselvise.com 2 ITA No.3076/Del/2025 (AY 2017-18) by the assessee u/s.139(1) of the Act in response to the notice issued u/s.142(1) of the Act. The Assessing Officer (AO) vide assessment order dated 18.12.2019 passed u/s.144 of the Act made addition of the entire amount of Rs.13,55,000/- u/s.69A r.w.s. 115BBE of the Act. Penalty proceedings u/s.271AAC(1) of the Act were also initiated. Notice u/s. 274 r.w.s. 271AAC(1) of the Act dated 17.09.2021 was issued to the assesesee. The AO in ex-parte proceedings levied penalty u/s.271AAC(1) of the Act Rs.1,04,674/- i.e. @10% of the tax payable u/s.115BBE of the Act. The assessee filed appeal against the penalty order dated 16.03.2022. The assessee filed appeal before the CIT(A). The CIT(A) vide impugned order confirmed the penalty order. 3. I find that the impugned order has been passed in ex-parte proceedings. In the interest of justice this appeal is restored to the CIT(A) for fresh adjudication after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 4. The assessee upon service of notice by the CIT(A) shall respond to the same, without fail. 5. It is further brought to the notice of Bench that assessee’s appeal in ITA No. 1387/Del/2024 for AY 2017-18 against ex-parte order of CIT(A) upholding assessment order has already been restored back to the CIT(A) by the Tribunal vide order dated 17.02.2025 for fresh adjudication. Printed from counselvise.com 3 ITA No.3076/Del/2025 (AY 2017-18) 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Monday the 27th day of October, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 27/10/2025 NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "