GULSHAN CHAWLA,DELHI V. ITO, WARD 59(4), DELHI, DELHI

ITA 585/DEL/2024

AI Insights

The case involves Gulshan Chawla, the appellant, who appealed against the order of the Learned Commissioner of Income-Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, which confirmed the additions made by the Income-Tax Officer (ITO), Ward 59(4), New Delhi, under Section 143(3) of the Income-Tax Act, 1961 for the assessment year 2017-18. The additions were based on unexplained cash deposits and credit entries in the bank account of the assessee. The appellant contested the additions and the disallowance of deductions claimed under Chapter VIA, citing disregard of evidence and facts. The tribunal, after considering the submissions and the record, decided to restore the matter to the Assessing Officer for a fresh decision, emphasizing the need for a thorough reassessment of the additions made.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473265 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2025
• 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
• Section: 143(3); 143(2); 143(1); 69A

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 585/DEL/2024 Assessment Year: 2017-18 Gulshan Chawla, H. No.74, Gali No.1, Shastri Park, Chander Nagar, Delhi-1100 51 PAN No. AAFPC7915H Vs. Income-Tax Officer, Ward 59(4), New Delhi (Appellant) (Respondent) O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER: The appeal filed by the appellant/assessee is against order dated 18.01.2024 passed by the Learned Commissioner of Income-Tax(Appeals)/National Faceless Appeal Centre(NFAC), Delhi (hereinafter referred as Ld CIT(A)) arising out of assessment order dated 30.12.2019 of the ITO, Ward-59(4), Delhi (hereinafter referred as “ Ld. A.O.”) under Section 143(3) of the Income-Tax Act, 1961 (hereinafter referred as “the Act”) for assessment year 2017-18. Assessee by: N o n e Department by: Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing: 05.03.2025 Date of pronouncement: 05.03.2025 ITA No.585/Del/2024 2 2. Brief facts of the case are that appellant/assessee company filed e-return of income-tax declaring total income of Rs.5,68,839/- on 31.03.2018. The return of income was processed under Section 143(1) of the Act. The case was selected for scrutiny assessment under Section 143(2) of the Act. Notice under Section 143(2) of the Act was issued on 09.08.2018. Assessee failed to comply with the notice. Notice under Section 142(1) of the Act was issued on 06.05.2019. The available data, revealed that assessee had cash deposits of Rs.75,97,000/- between 9th November 2016 to 30th December 2016 during financial year 2016-17 relevant to assessment year 2017-18 but no reply was filed. In response to the said notice, the assessee filed his reply on e-proceeding portal on 05.12.2019. On completion of proceedings, Ld. A.O. vide order dated 30.12.2019 made an additions of Rs.76,47,000/- and Rs.20,89,000/- and Rs.1,50,000/-. 3. Against order dated 30.12.2019, the appellant/assessee filed appeal before the Ld. CIT(A) which was dismissed vide order dated 18.01.2024. 4. Being aggrieved, the appellant/assessee, preferred present appeal with following grounds:- ITA No.585/Del/2024 3 1. That Ld. CIT(A)-NFAC has erred by confirming the assessment under Section 143(3) of the Income-Tax Act, 1961 in sheer disregard of the of the case. 2. That Ld. CIT(A)-NFAC has erred by confirming the action of the Assessing Officer wrongly and illegally making addition of Rs.76,47,000/- under Section 69A of the Income-Tax Act, 1961 , the amount of cash deposited into bank out of cash in hand and sale proceeds of its inventory, his action is arbitrary, in sheer disregard of evidences and facts of the case. 3. That Ld. CIT(A)-NFAC has erred by confirming the action of the Assessing Officer wrongly and illegally made addition of Rs.20,89,025/- under Section 69A of the Income-Tax Act, 1961 , the amount of credit entries into bank, his action is arbitrary, in sheer disregard of evidences and facts of the case. 4. That Ld. CIT(A)-NFAC has erred by confirming the action of the Assessing Officer wrongly and illegally disallowed deductions claimed under Chapter VIA, a sum of Rs.1,50,000/-, in sheer disregard of evidences and facts of the case. 5. That the appellant craves leave to add, amend and alter any grounds of appeal.” 5. Despite notices, the appellant/assessee failed to appear on 25.06.2024, 07.01.2024 and today. 6. Learned Departmental Representative relied upon the order of the departmental authorities. 7. From the examination of the record in light of above submissions, it is crystal clear that Appellant/assessee had filed ITA No.585/Del/2024 4 e-proceedings on portal on 05.12.2019 but failed to prove source of cash deposits. Ld. CIT(A) vide order dated 18.01.2024 upheld the order dated 30.12.2019. In ground of appeal, appellant/assessee has challenged upholding of additions despite credit entries into the bank and illegal disallowance of deduction claimed under Chapter VIA. 8. In view of above material facts in the interest of justice, it is considered expedient to restore the matter to the file of learned Assessing Officer for fresh decision in accordance with law. 9. Hence, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 05/03/2025. Sd/- Sd/- (M BALAGANEH) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 11/03/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "