INCOME TAX OFFICER, DELHI V. RAKHEE WALECH, DELHI

ITA 5987/DEL/2024

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the Commissioner of Income Tax (Appeals), which had deleted several additions and disallowances made during the assessment of Rakhee Walecha for the Assessment Year 2017-18. The additions included disallowances under various sections of the Income Tax Act, 1961, such as unexplained cash deposits and unexplained expenses. The CIT(A) had accepted additional evidence from the Assessee without a remand report from the AO, which the Revenue contended was a violation of Rule 46A of the Income Tax Rules, 1962. The Tribunal agreed with the Revenue's contention and remanded the matter back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712616 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: ANUJ TIWARI
• Keywords: Additional evidence; Unexplained cash credit
• Section: 68

Judgement Text

" 1 ITA No. 5987/Del/2024 ITO VS. Rakhee Walech IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH : “A” NEW DELHI] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER I.T.A. No. 5987/Del//DEL/2024 (A.Y 2017-18) Income Tax Officer Room No. 1210, E-2, Block, Civic Centre, New Delhi Vs Rakhee Walecha, 455, Mandakini Enclave, Alaknanda, New Delhi PAN: AAIPW4418J Appellant Respondent Assessee by Sh. Anuj Tiwari, CA Revenue by Sh. Ajay Kumar Arora, Sr. DR Date of Hearing 16/07/2025 Date of Pronouncement 29/07/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Revenue against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 23/10/2024 for the Assessment Year 2017-18. 2. Brief facts of the case are that, the Assessee being an individual, filed his return of income for the AY 2017-18 by declaring the total income at Rs. 8,79,110/-. The return of Assessee was selected for scrutiny through CASS. An assessment order came to be passed on 16/12/2019 by disallowing Rs. 4,22,891/- During the assessment proceedings, various statutory notices were issued to the Assessee and the assessment proceedings were completed by disallowing the bonus u/s 36(1)(ii) of the Income Tax Act, 1961 ('Act' for short) of Rs. Printed from counselvise.com 2 ITA No. 5987/Del/2024 ITO VS. Rakhee Walech 4,22,891/-, making addition of Rs. 91,31,710/- on account of unexplained cash deposit during the demonetization, disallowed Rs. 83,660/- claimed under the head of damage and penalty, disallowed Rs. 2,73,769/- claimed on account of unexplained expenses debited to profit and loss account and also made addition of Rs. 21,550/- on account of unexplained credit u/s 68 of the Act. 3. Aggrieved by the assessment order dated 16/12/2019, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 23/10/2024, by considering the submissions and the documents produced during the first appellate proceedings, deleted the additions made by the A.O. vide order impugneddated 23/10/2024. Aggrieved by the order of the Ld. CIT(A) dated 23/10/2024, the Department preferred the present Appeal. 4. The Department's Representative submitted that the Ld.CIT(A)/ NFAC has erred in not affording an opportunity to the AO to examine and verify the additional evidences submitted by the assessee during course of appellate proceedings and rebut the same thereby violating provision of Rule 46A of the Income Tax Rules, 1962. Thus, sought for setting aside the impugned order of the Ld. CIT(A) . 5. Per contra, the Ld. Assessee’s Representative submitted that the Ld. CIT(A) has rightly deleted the additions made by the A.O. on its Printed from counselvise.com 3 ITA No. 5987/Del/2024 ITO VS. Rakhee Walech merits after considering cogent and undisputed documents and also the submissions made by the Assessee during the first appellate proceedings, therefore, the order impugned requires no interference at the hands of the Tribunal. Thus, sought for dismissal of the Appeal of the Revenue. 6. We have heard both the parties and perused the material available on record. During the assessment proceedings, even after issuing several notices, the Assessee failed to make any submission or produce any document in support of the claim of the Assesse.The assessment has been framed based on the material available on record by making certain addition/disallowances. During the first appellate proceedings, the Assessee produced certain documents for the first time before the Ld. CIT(A) as additional evidence, however, the Ld. CIT(A) without calling for the Remand Report from the A.O., considered those additional evidence and deleted the additions/disallowance. In our considered opinion, the approach of the Ld. CIT(A) is contrary to Rule 46A of the Income Tax Rules, 1962. When an application under Rule 46A of the Income Tax Rules, 1962 was filed, the Ld. CIT(A) ought to have called for the comments from the A.O. by way of Remand Report and after considering the Remand Report should have considered additional evidence produced by the Assessee. In view of the above, we remand the matter to the file of the Printed from counselvise.com 4 ITA No. 5987/Del/2024 ITO VS. Rakhee Walech Ld. CIT(A) for fresh adjudication of the Appeal with a direction to comply with Rule 46A of the Ruleswhile considering the additional evidence produced by the Assessee and decide the Appeal after receiving the comments/Remand Report from the A.O. All the contention of the Assessee are kept open. 7. In the result, Appeal of the Revenue is partly allowed for statistical purpose. Order pronounced in the open court on 29th July, 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 29 .07.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com 5 ITA No. 5987/Del/2024 ITO VS. Rakhee Walech Printed from counselvise.com "