INCOME TAX OFFICER WARD-43(1) DELHI, DELHI V. NARESH ANEJA, NEW DELHI

ITA 3349/DEL/2023

AI Insights

The case involves an appeal by the Income Tax Officer against Naresh Aneja concerning the assessment for the year 2017-18. The primary contention was the correctness of the CIT(A)'s reversal of the assessment findings, which included additions under section 69A and disallowances under Chapter-VIA deductions. However, a significant issue raised was the improper service of the notice under section 143(2), which the assessee argued rendered the assessment invalid. The Tribunal, referencing the Supreme Court's decision in CIT Vs. Laxman Das Khandelwal, upheld the assessee's challenge, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471605 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 25-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 24-11-2023
• Other Referred Cases: CIT Vs. Laxman Das Khandelwal (2019) 417 ITR 325 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.S. ANAND
• Assessee Lawyers: ANIL JAIN; AMBRISH SINGHAL
• Section: 144; 143(3); 292BB; 143(2); 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh, Accountant Member ITA No. 3349/Del/2023 : Asstt. Year : 2017-18 Income Tax Officer, Ward-43(1), New Delhi Vs Naresh Aneja, Shop No. 162, Nawada Bazar, Najafgarh, New Delhi-110043 (APPELLANT) (RESPONDENT) PAN No. AAEPA5903G Assessee by : Sh. Anil Jain, CA & Sh. Ambrish Singhal, CA Revenue by : Sh. B. S. Anand, Sr. DR Date of Hearing: 25.11.2024 Date of Pronouncement: 27.11.2024 ORDER Per Satbeer Singh Godara, Judicial Member: This Revenue’s appeal for Assessment Year 2017-18, arises against the order of CIT(A)/NFAC, Delhi dated 16.03.2023 in DIN & Order No. ITBA/NFAC/S/250/2022- 23/1050843344(1) in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “The Act”). 2. Heard both parties at length. Case files perused. 3. We note during the course of hearing that apart from the Revenue’s instant appeal raising various substantive ground challenging correctness of the CIT(A)’s section reversing assessment findings inter alia making section 69A r.w.s. 115BBE addition of Rs.20,23,753/- followed by Chapter-VIA deduction disallowance to the tune of Rs.56,195/-, the assessee has preferred its application under Rule 27 of the ITA No. 3349/Del/2023 Naresh Aneja 2 ITAT Rules wherein he challenges the assessment itself for want of a valid notice issued and served u/s 143(2) of the Act. It is in this factual backdrop that the Revenue could hardly dispute the clinching fact that not only the Assessing Officer’s assessment dated 28.12.2019 in paragraphs 1 & 2 made it clear enough that he had issued the relevant notice to this effect on 24.09.2018 which was served on 03.10.2018. And also that the assessee had not complied with the same before the Assessing Officer as per the assessment discussion in para 4 page 7 proceedings ex-parte against him u/s 144 of the Act. Learned counsel further invites our attention to the assessee’s second substantive ground to this effect raised which stood rejected by the CIT(A)/NFAC in paragraph 6.2 pages 5 & 6 of the lower appellate findings. 4. Faced with this situation and once the foregoing facts have made it clear that the learned Assessing Officer did not “serve” his foregoing section 143(2) notice as per the proviso thereto making it mandatory to get it “served” within the specified period and the said defect is nor curable as the assessee had not put his appearance before the Assessing Officer so as to get section 292BB attracted, we accept the instant Rule 27 application that the impugned assessment itself is not sustainable in the eyes of law going by CIT Vs. Laxman Das Khandelwal (2019) 417 ITR 325 (SC) having decided the very issue against the department. The impugned assessment dated 28.12.2019 framed by the learned Assessing Officer is quashed and the Revenue’s appeal ITA No. 3349/Del/2023 stands rejected as the necessary corollary thereto. 5. All other pleadings on merits stand rendered academic. ITA No. 3349/Del/2023 Naresh Aneja 3 6. This Revenue’s appeal is dismissed in above terms. Order Pronounced in the Open Court on 27/11/2024. Sd/- Sd/- (M. Balaganesh) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 27/11/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "