EZSPEND PREPAID PAYMENT SOLUTIONS PRIVATE LIMITED,NEW DELHI V. DCIT CIRCLE 7(1), NEW DELHI

ITA 1242/DEL/2024

AI Insights

Ezspend Prepaid Payment Solutions Private Limited, through its director Ms. Neha Jetley, appealed against the order of the CIT(A)/National Faceless Appeal Centre, which had dismissed their earlier appeal regarding an assessment order that significantly increased their declared income. The original assessment under section 144 of the Income Tax Act, 1961, added a substantial amount to the Assessee's income, citing unexplained bank deposits. The Assessee contended that they had not received any notices for the hearings, leading to an ex-parte decision. The Tribunal found merit in the Assessee's claim of non-receipt of notices and remanded the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 22952 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Assessee Lawyers: SANJEEV SAPRA
• Keywords: Condonation of delay; Unexplained cash credit
• Section: 144

Judgement Text

" 1 ITA No. 1242/Del/2024 Ezspend Prepaid Payment Solutions Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 1242/Del/2024 (A.Y. 2017-18) Ezspend Prepaid Payment Solutions Private Limited Through Director Ms. Neha Jetley Hosue No. 440, Street No.D-22, Chhattarpur Pahari, New Delhi PAN: AAFCR3128L Vs DCIT Circle-7(1) Room No. 356, C. R. Building, I. P. Estate, New Delhi Appellant Respondent Assessee by Sh. Sanjeev Sapra, CA Revenue by Sh. Surender Pal, CIT DR Date of Hearing 27/01/2025 Date of Pronouncement 29/01/2025 ORDER PER YOGESH KUMAR, U.S. JM: This present appeal is filed by the Assessee against the order of the CIT(A)/National Faceless Appeal Centre, Delhi [(‘NFAC’) for short] dated 20/09/2023 for the Assessment Year 2017-18. 2. The Grounds of Appeal are as under: - “1. Respondent has erred in fact and in law. 2. None of the notices stated in the Impugned Order, dated 20.09.2023, have been served upon the Appellant, physically 2 ITA No. 1242/Del/2024 Ezspend Prepaid Payment Solutions Vs. DCIT or electronically. Hence, the Impugned Order has been passed in an ex-parte manner. 3. There has been no adjudication on merits in the Impugned Order. The assessment made is not the Best Judgement Assessment, as required under the Income Tax Act, 1961. 5. The above-mentioned grounds are independent and without prejudice to each other. The said grounds are also non- exhaustive and a more comprehensive list is provided in the appeal. 3. Brief facts of the case are that, an Assessment order came to be passed u/s 144 of the Income Tax Act, 1961 (‘Act’ for short) by computing the income of the Assessee at Rs. 62,18,64,420/- as against the total loss declared by the Assessee at Rs. 70,16,262/- in her return of income by making an addition of Rs. 62,88,80,680/- on account of unexplained credit in Assessee’s books of account being cash deposits in the banks of the Assessee. Aggrieved by the assessment order dated 17/12/2019, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 20/09/2023, dismissed the Appeal filed by the Assessee. 4. As against the order of the Ld. CIT(A) dated 20/09/2023, the Assessee preferred the present Appeal on the Grounds mentioned above. 3 ITA No. 1242/Del/2024 Ezspend Prepaid Payment Solutions Vs. DCIT 5. As per the Grounds of Appeal the grievance of the Assessee is that both the authorities have passed ex-parte orders without serving the notice to the Assessee either physically or electronically. 6. The Ld. Departmental Representative submitted that sufficient opportunities have been given to the Assessee who has failed to appear before the authorities below, therefore, sought for dismissal of the Appeal. 7. Heard, perused the material. The Assessee filed an affidavit, wherein contended that, the impugned orders have been passed by the Authorities without hearing the Assessee and the Assessee could not participate as the notices have not been served on the Assessee since the Assessee shed down the operations and laid off of the employees except the Directors. The Assessee came to know about passing of the assessment order only on 20/12/2019. Further the Assessee contended in the affidavit that the Assessee preferred an Appeal along with application for condonation of delay however, the order impugned came to be passed without service of notice and without hearing the Assessee. The Assessee's Representative filed submission contending that the present address for service of the Assessee and e-mail id for 4 ITA No. 1242/Del/2024 Ezspend Prepaid Payment Solutions Vs. DCIT communication reads as under and prayed for remanding the matter to the file of the A.O for fresh adjudication. Eszpend Prepaid Pyament Solutions Pvt. Ltd. C/o Ms Neha Jetley Managing Director 9, Shakuntala Farms Mehrauli Gurgaon Road New Delhi-110030 Email: [e-mail] [e-mail] 8. Considering the above facts and circumstances, we deem tit fit to restore the issue involved in the present Appeal to the file of the A.O. with a direction to issue notice to above mentioned address and e-mail id of the Assessee and frame the de-novo assessment in accordance with law. Further the Assessee is also directed to cooperate with the assessment proceedings, failing which the A.O. is at liberty to pass appropriate assessment order in accordance with law. 9. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 29th January, 2025 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 29 .01.2025 R.N, Sr.P.S* 5 ITA No. 1242/Del/2024 Ezspend Prepaid Payment Solutions Vs. DCIT Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "