DINESH JOSHI,GANGTOK, SIKKIM V. D.C.I.T., CIRCLE - 3(2), GANGTOK, SIKKIM

ITA 1841/KOL/2025

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The case involves Dinesh Joshi, a resident of Sikkim holding a Sikkim Subject Certificate, who was assessed for income tax despite not filing a return for the assessment year 2019-20. The Assessing Officer noted a substantial cash deposit in the assessee's bank accounts and reopened the case under Section 148 of the Income-tax Act, 1961. The assessment was completed ex parte, leading to a disallowance under Section 69B read with Section 115BBE of the Act. The CIT(A) upheld this decision due to the absence of any response from the assessee. The Tribunal, considering the principles of natural justice, decided to remand the case back to the CIT(A) for a detailed examination and a reasoned order after hearing the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782735 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Appeal Filed On: 18-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 147; 148; 144

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No.1841/Kol/2025 Assessment Year: 2019-20 Dinesh Joshi……….…………………………………………….……….……Appellant C/o Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kol-700069. [PAN: ALLPJ0216D] vs. DCIT, Circle-3(2), Gangtok………………………………….....……...…..…..Respondent Appearances by: Shri Siddharth Agarwal, Advocate, appeared on behalf of the appellant. Shri Manas Mondal, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : October 16, 2025 Date of pronouncing the order : October 28, 2025 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 20.05.2025 of the National Faceless Appeal Centre [‘CIT(A)’] passed under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2019–20. 2. The appeal has been filed by the assessee with a delay of 28 days. The assessee has filed an affidavit for condonation of the delay. After considering the reasons cited in the affidavit for condonation of delay, we find that the reasons are valid and consequently, the delay in filing the appeal is hereby condoned and we proceed to dispose of the appeal on merits. Printed from counselvise.com ITA No.1841/Kol/2025 Dinesh Joshi 2 3. Brief facts of the case are that the assessee is a resident of State of Sikkim holding Sikkim Subject Certificate and the assessee is not liable to pay any income tax as per law. The assessee has not filed return of income for the assessment year under consideration. The Assessing Officer found that the assessee had deposited cash of Rs.3,98,43,042/- in bank accounts of the assessee. The Assessing Officer reopened the case of the assessee and issued notice u/s 148 of the Act asking the assessee to give details for the said transaction but the assessee did not respond. Thereafter, the Assessing Officer completed the assessment ex parte by making disallowance of Rs.85,61,870/- u/s 69B r.w.s. 115BBE of the Act. 4. Aggrieved by the said order, the assessee filed an appeal before the CIT(A). The ld. CIT(A) simply confirmed the order of the Assessing Officer in the absence of the any response from the assessee. 5. Aggrieved and dissatisfied, the assessee is in appeal before us. At the time of hearing, the Ld. AR without going into the merits of the case has only prayed for one more opportunity may be given to the assessee to substantiate the case before the authorities below. 6. The Ld. DR did not make any objection to the above proposal of the ld. AR. 7. We have considered the submissions of the counsels of the respective parties and perused the material available on record. We find that the assessment order was passed u/s 147 r.w.s. 144 of the Act and even before the ld. CIT(A), the assessee did not able to give any explanation to substantiate his case. Under the circumstances and on the request of the ld. AR, in the interest of natural justice, we deem it fit to remand this matter back to the file of ld. CIT(A) with the direction to Printed from counselvise.com ITA No.1841/Kol/2025 Dinesh Joshi 3 adjudicate the matter on merits after affording opportunity to the assessee of being heard and to pass a speaking order in accordance with law after considering documents or explanations submitted by the assessee. The assessee is directed to fully cooperate in the remand proceedings by producing supporting documents to substantiate the case. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Kolkata, the 28th October, 2025. Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated: 28.10.2025. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "