GUDDU KUMAR,DELHI V. ITO,WARD-45(8), NEW DELHI

ITA 1486/DEL/2024

AI Insights

The case involves an appeal by Guddu Kumar against the order of the National Faceless Appeal Centre (NFAC) Delhi, which had dismissed his appeal ex-parte concerning an assessment order for the year 2017-18. The original assessment was made under section 144 of the Income Tax Act, 1961, where an addition of Rs. 88,01,000 was made as unexplained income under section 68. The assessee contended that he had not received any communication from the department regarding the appeal, leading to its dismissal without a hearing. The Tribunal noted the absence of a decision on merits by the NFAC and thus decided to remand the case back to the NFAC for a thorough examination on merits after providing the assessee a final opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314380 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Set aside
• Section: 144

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. SUDHIR PAREEK, JUDICIAL MEMBER ITA No.1486/Del/2024 Assessment Year: 2017-18 Guddu Kumar C/O Pradeep Laljit & CO House No 77 Pocket A-8 Kalkaji Extn Delhi 110019 PAN NO. CWSPK8549 Q Vs. ITO Warde -45(8) New Delhi (APPELLANT) (RESPONDENT) Appellant by None(Written argument) Respondent by Shri Rajesh Kumar Dhanesta Sr. DR Date of hearing: 07/05/2025 Date of Pronouncement: 07/05/2025 ORDER PER SUDHIR PAREEK, JUDICIAL MEMBER: This appeal is preferred by the assessee against the order dated 09.02.2024 of the National Faceless Appeal Centre Delhi [hereinafter referred to as “NFAC)”] passing against the 2 assessment order vide order dated 21.12.2019 for the assessment year 2017-18 u/s 144 of the Income Tax Act 1961[hereinafter referred to as “the Act”] 2. The brief facts of the case are that the assessee has filed return of income declaring total income of Rs.4,25,880/- on 30- 10-2017 u/s 139(1) of the Act. The case of the assessee was selected for scrutiny under CASS. Notice u/s 143(2) of the Act was issued on 24-09-2018 and duly served upon the assessee. Again, notice u/s 142 (1) of the Act was issued with questionnaire. The assessee did not attend the proceedings. The AO completed the assessment by making the addition of Rs. 88,01,000/-u/s 68 of the Act as explained income. Aggrieved the order of the AO the assessee preferred the appeal before the Ld. NFAC Delhi who vide his order dated 21-12-2019 dismissed the appeal ex-parte. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal. 3. Ld. AR for the assessee submitted that the assessee has not received the email or postal address from the department. He 3 also submitted that the appeal was dismissed without being heard of the assessee. He prayed that the appeal be heard on merit. 4. Ld. Sr. DR submitted that assessee is a non- cooperative. The assessee has not attended the proceedings before the lower authorities He further stated that the appeal was rightly dismissed by the Ld. NFAC. 5. We have heard the rival contention and perused the material available on record. It is admitted fact that the despite opportunities granted by the AO as well as the Ld. NFAC the assessee did not appear before either of the authorities for which ex-parte orders have been passed by the A.O. as well as the Ld. NFAC. However, the Ld. NFAC in the instant case has not decided the appeal on merits which he was supposed to as per the provisions of the Section 250(6) of the Act. 6. Since in the instant case the Ld. NFAC has simply dismissed the appeal ex-parte and has not decided the appeal on merits, therefore considering the totality of the facts and circumstances 4 of the case and in the interest of justice, we, deem it proper to restore the issue to the file to the Ld. NFAC with a direction to grant one final opportunity to the assesee to substantiate its claim and decide the issue as per fact and law on merits. Therefore, we set aside the order passed by the Ld. NFAC Delhi. 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 07.05.2025. Sd/- Sd/- (SHAMIM YAHYA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIAL MEMBER Date: 07 .05.2025 Neha, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "