DEPUTY COMMISSIONER OF INCOME TAX, NOIDA V. RAHUL GAUR, DELHI

ITSSA 1121/DEL/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax, Central Circle Noida, against the order of the Commissioner of Income Tax (Appeals)-3, Noida, which set aside the ex-parte assessment order made by the Assessing Officer for the Assessment Year 2012-13. The original assessment was based on materials seized during a search operation under section 132 of the Income Tax Act, 1961, conducted on the assessee, Rahul Gaur. The Assessing Officer completed the assessment ex-parte due to non-compliance by the assessee in responding to statutory notices. The CIT(A) found merit in the assessee's appeal and remanded the case for a fresh assessment, leading to the Revenue's appeal to the Income Tax Appellate Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772757 (ITAT-DELHI)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RICHA GAHARWAL
• Assessee Lawyers: ISSUING NUMBER OF STATUTORY NOTICES INCLUDING FINAL SHOW
• Keywords: Set aside; Capital Gains
• Section: 132; 153A

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER IT(SS)A No.1121/Del/2025, A.Y. 2012-13 Dy. Commissioner of Income Tax, Central Circle Noida, Income Tax Office, 2nd Floor, ARTO Building, Sector-33, Noida, Uttar Pradesh Vs. Rahul Gaur A-989, BRYS Grounds, Sector-7, Palam Extension, Dwarka, New Delhi PAN: AGQPS5386H (Appellant) (Respondent) Appellant by Ms. Richa Gaharwal, CIT-DR Respondent by None Date of Hearing 25/08/2025 Date of Pronouncement 29/08/2025 ORDER PER AVDHESH KUMAR MISHRA, AM The appeal for the Assessment Year (‘AY’) 2012-13 filed by the Revenue is directed against the order dated 03.12.2024 of the Commissioner of Income Tax (Appeals)-3, Noida [‘CIT(A)’]. 2. Following grounds have been raised in this appeal by the Revenue: - “1. Whether on facts and circumstances of the case and in law, Ld. CIT(A)-3, Noida has erred in setting aside the case with the direction to the AO for making a fresh assessment as per provisions of law, 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. Printed from counselvise.com ITA No.1121/Del/2025 Rahul Gaur, Delhi 2 2. Whether on facts and circumstances of the case and in law, Ld. CIT(A)-3, Noida has erred in accepting the plea of the assessee 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, without appreciating the facts that the Assessing Officer has passed the assessment order after thoroughly examining and analyzing the seized material and proper appreciation of facts. The restoration of the case to the file of the Assessing Officer for making fresh assessment without narrating any reasonable ground for failure on the part of the assessee is not in accordance with the intent and spirit of provisions contained in section 251(1)(a), proviso of the Act. 4. 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 fact that final show cause notice provides the assessee to respond to the AO 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 1-14 of the Act. 5. 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.” 3. The relevant facts giving rise to this appeal are that the Assessing Officer (‘AO’) completed the search assessment ex-parte. The search & seizure operations under section 132 of the Income Tax Act, 1961 (‘Act’) have taken place on the assessee on 09.10.2013. Thereafter, the AO issued notice under section 153A of the Act to the assessee to file the return of income. During the course of assessment proceedings, the assessee was show-caused to explain the source of investment in share and working of capital gains on the sale of a plot. But the assessee failed to ensure any Printed from counselvise.com ITA No.1121/Del/2025 Rahul Gaur, Delhi 3 compliance of statutory notices; therefore, the AO had no option except to complete the assessment ex parte under section 144/153A of the Act. The search assessment was completed at income of Rs.6,00,78,000/-. Aggrieved the assessee filed appeal before the CIT(A), who set aside the assessment order and remanded the matter back to the AO for fresh assessment denovo. Aggrieved, the Revenue challenged the impugned order before us. 4. We heard the Ld. CIT-DR. On specific query that what is the grievance of Revenue when the assessment has been remanded back to the AO to make a fresh assessment, the Ld. CIT-DR had not to say much. Before us, the assessee was not represented by anyone. 5. We have perused the material available on the record. Keeping in view the facts of the case in entirety and without offering any comment on merit of the case, we do not see any infirmity in the impugned order. Hence, we decline to interfere with. 6. In the result, the appeal of the Revenue stands dismissed. Order pronounced in open Court on 29th August, 2025 Sd/- Sd/- (YOGESH KUMAR U.S.) (AVDHESH KUMAR MISHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29/08/2025 Binita, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent Printed from counselvise.com ITA No.1121/Del/2025 Rahul Gaur, Delhi 4 3. PCIT/CIT 4. CIT(Appeals) 5. CIT-DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "