DHARAMBIR,DELHI V. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, DELHI

ITA 4860/DEL/2025

AI Insights

The case involves an appeal by the assessee, Dharambir H., against the order of the Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC) for the Assessment Year 2014-15. The primary contention of the assessee was the procedural irregularities in the issuance and service of notices under sections 147 and 148 of the Income Tax Act, 1961, which led to an ex parte assessment under section 144B. The assessee argued that the notices were either not validly issued or not properly served, rendering the assessment void ab initio. Additionally, the assessee contested the additions made under section 68 concerning cash deposits, claiming they were from the sale proceeds of a property and belonged to his mother-in-law, with whom he held a joint account. The tribunal, considering the procedural lapses and the undertaking provided by the assessee to cooperate with the proceedings, decided to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837621 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 08-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 147; 148; 144; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘C’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4860/Del/2025 Assessment Year 2014-15 Dharambir H. NO.227, Pandwala, Kalan, Najafgarh, New Delhi PAN No.AGYPY8801D Vs. National Faceless Assessment Centre, Delhi Appellant Respondent Appellant Sh. Manpreet Singh Kapoor, CA Sh. Rajendra Singh Rathoe, Advocate Respondent Sh. Om Prakash, Sr. DR Date of Hearing 14.01.2026 Date of Pronouncement 17.02.2026 ORDER PER C.N. PRASAD, JM, This appeal is filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals)/NFAC dated 25.02.2025 for A.Y. 2014-15. 2. The assessee has raised following grounds of appeal :- “ 1. That the CIT(A) has erred in law and on facts in upholding the assessment order passed under section 147 r.w.s. 144B, which is invalid by procedural Printed from counselvise.com Page | 2 Irregularities and non-compliance with the mandatory provisions of law, rendering the order bad in law. 2. That the CIT (A) has erred in law and on facts in confirming the assessment order, despite the fact that the notice issued under section 148 of the Income-tax Act, 1961 dated 28.03.2021 was either not validly issued or not served upon the assessee during the assessment proceedings, up to the passing of the assessment order dated 29.03.2022, thereby rendering the assessment proceedings vold-ab-initio and bad in law. 3. That the notice u/s 148 has been issued without complying with mandatory procedure prescribed under Section 148A of the Income Tax Act as substituted by the Finance Act, 2021 4. That the impugned notice has been not delivered by Ld.AO on or before 31.03.2021 and thus it was incumbent on the part of the Ld.AO to follow the amended law as enumerated under Section 148, 148A and 149 of the Income Tax Act, 1961. 5. That the impugned notice u/s 148 of the Income Tax Act issued by the Ld.AO and confirmed by CIT (A) is in contravention to the provisions of Section 149(1). (b) of the Act and the first proviso thereto. 6. That the CIT (A) has erred in law in upholding the assessment order, despite the fact that the assessment proceedings were conducted without proper service of notice. The notice was issued to an incomplete and Incorrect address, lacking essential particulars such as the house number, and merely mentioning the village and state, thereby depriving the assessee of an effective opportunity to participate in the proceedings. Such defective service is in violation of the principles of natural justice and renders the assessment order bad in law. 7. That the Ld.AO and confirmed by CIT (A) has erred in law and facts by Invoking Section 144 even when the necessary ingredients for invoking were not present. 8. That the Ld.AO has erred in law & facts and confirmed by CIT (A) by making an addition u/s 68 on account of cash deposit amounting to Rs.1,12,01,000/-, which is bad in law as per the facts & circumstances of the case. Rs.1,03,40,082/- Printed from counselvise.com Page | 3 9. The appellant prays for leave to add, alter, modify and withdraw any of the grounds either before or at the time of hearing.” 3. The Ld. Counsel for the assessee at the outset submitted that both assessment by AO as well as Ld. CIT(A) order’s are exparte as no notices were received by the assessee. The assessment was made u/s.144B as best judgment assessment and the appeal was dismissed without going into the merits of the case observing that there was no response from the assessee. Therefore, the Ld. Counsel for the assessee submitted that one opportunity may be given to the assessee for substantiating the deposits made by the assessee into bank account since the deposits are from out of sale proceeds of the property. The Ld. Counsel further submitted that the addition made in the hands of the assessee in respect of cash deposits are all belonging to exclusively to Smt. Vidya Devi who is the mother-in-Law of the assessee and assessee was only holding a joint account with her. Therefore, the Ld. Counsel for the assessee submitted that an opportunity may be given to explain the transactions to the AO. 4. On the other had the DR has no serious objection. 5. In the course of hearing the assessee was directed to file an undertaking that he will cooperate with the proceedings before the AO/ CIT(A) and receive all notices and the assessee furnished the following undertaking :- Printed from counselvise.com Page | 4 6. Taking the totality of the facts and circumstances of the case and the undertaking given by the assessee and also for the reason that the Ld. CIT(A) disposed of the appeal exparte without going into the merits, we are of the view that it is appropriate to restore this appeal to the file Printed from counselvise.com Page | 5 of the AO for making a fresh assessment after providing adequate opportunity to the assessee. 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 17.02.2026. Sd/- Sd/- [M. BALAGANESH] [C.N. PRASAD] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:17.02.2026 NEHA , Sr.P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "