DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I, NOIDA, NOIDA V. STRAWBERRY FARMER AGRO PRODUCTS, NOIDA

ITA 4091/DEL/2025

AI Insights

The case involves the Deputy Commissioner of Income Tax, Central Circle-I, Noida (Appellant) against Strawberry Farmer Agro Products (Respondent) concerning the Assessment Year 2019-20. The dispute arose from an assessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961, which added undisclosed income to the assessee's account. The CIT(A) set aside the assessment due to procedural lapses and referred the matter back to the Assessing Officer. The Tribunal dismissed the revenue's appeal, agreeing with the CIT(A)'s decision to ensure a fair reassessment process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786004 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2019-2020
• Appeal Filed On: 26-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Keywords: Set aside; Principle of natural justice
• Section: 147; 148; 142(1)

Judgement Text

"P a g e | 1 ITA No.4091/Del/2025 DCIT Vs. Strawberry Farmer Agro Products (AY: 2019-20) THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER & SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.4091/Del/2025 (Assessment Year: 2019-20) Dy. Commissioner of Income Tax, Central Circle-I, Office of the Deputy Commissioner of Income Tax, Central Circle -0I, Noida, Noida, UP 201301 Vs. Strawberry Farmer Agro Products C-3, Sector-7, Noida, Gautam Budh Nagar, Noida, UP 201301 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: ACXFS6899J Appellant .. Respondent Appellant by : Sh. Manish Gupta, Sr. DR Respondent by : None Date of Hearing 16.10.2025 Date of Pronouncement 29.10.2025 O R D E R PER MADHUMITA ROY, JM: The instant appeal filed by the revenue is directed against the order passed by the Ld. CIT(A)-3 Noida, dated 24.04.2025 arising out of the Assessment Order dated 19.12.2023 passed by the ACIT, Noida, under Printed from counselvise.com P a g e | 2 ITA No.4091/Del/2025 DCIT Vs. Strawberry Farmer Agro Products (AY: 2019-20) Section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2019-20. 2. The assessee was given opportunities of being heard but failed to file reply to various notices issued under Section 148A(b) 148 & 142(1) of the Act. Show cause notice dated 16.11.2023 though issued no reply was made to the same. Finally, the income to the tune of Rs.2,41,16,506/- received on account of interest other than interest on securities was considered as undisclosed income and added in the hands of the assessee under Section 69A r.w.s 115BBE of the Act and further Rs.35,287/- on account of interest other than interest on securities added in the hands of the assessee as undisclosed income. The assessee preferred appeal and made a particular statement that the assessee was not aware of the assessment proceedings until it received the letter dated 22.05.2024 for recovery of outstanding demand and then tried to download the assessment order but was not being able to do the same from 27.05.2024 till 14.06.2024. Having no other alternative the assessee filed the appeal before the First Appellate Authority. 3. The Ld. CIT(A) in terms of power under Section 251(1)(a) of the Act set aside the issue to the file of the Ld. AO for fresh adjudication of the same with the following observations: “5.1 In this case assessment proceedings were completed u/s 144 of the Income Tax Act, 1961. The AO has stated in the assessment order that notice u/s 148A(b) was issued on 08.02.2023and notice u/s 148 was issued on 29.03.2023. The AO further stated that notices u/s 142(1) were issued on 19.10.2023 &31.10.2023 and further show cause notice u/s 144 was issued on Printed from counselvise.com P a g e | 3 ITA No.4091/Del/2025 DCIT Vs. Strawberry Farmer Agro Products (AY: 2019-20) 16.11.2023but no compliance was made by the assessee. Then, the AO proceeded to make additions of Rs. 2,41,16,506/- and Rs. 35,287/- on account of undisclosed income in the hands of the assessee and the case was assessed u/s 144 of the Income Tax Act, 1961. It appears from above that the assessee could not furnish any reply before the Assessing Officer. The appellant during the appellate proceedings stated that the assessee was not aware of the assessment proceedings until it was in receipt of letter issued by the AO dated 22.05.2024 for recovery of outstanding demand. Consequent to that the assessee tried to download the assessment order but was not able to do so from 27.05.2024 till 14.06.2024 (for which various grievances were filed), after which appeal was filed against the said assessment order. In above circumstances and in interest of natural justice it shall be prudent if the matter is set aside to the AO so that opportunity can be extended both to the assessee to give suitable explanation on various issues and to the AO to make a fair assessment of the real income of the assessee. 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, reducе, 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] 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. 4. Having regard to the fact of principle of natural justice being violated as the assessee could not be made known about the day to day proceeding before the Assessing Officer, considering the provision of Section 251(1)(a) amended w.e.f 01.10.2024 conferring the special power to the Commissioner of Income Tax to set aside the assessment which was passed under Section 144 of the Act and refer the matter to the AO for fresh assessment, the order passed by the Ld. CIT(A) is found to be Printed from counselvise.com P a g e | 4 ITA No.4091/Del/2025 DCIT Vs. Strawberry Farmer Agro Products (AY: 2019-20) just and proper so as not to warrant interference. The Revenue’s appeal is thus, found to be devoid of any merit and hence, dismissed. 5. The appeal of the revenue is dismissed. Order pronounced in the open court on 29.10.2025 Sd/- (Brajesh Kumar Singh) Sd/- (Madhumita Roy) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 29.10.2025 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "