JAMANA DASS,REWARI V. ITO WARD-1, REWARI

ITA 842/DEL/2025

AI Insights

The case involves an appeal by Jamana Dass against the order of the National Faceless Appeal Centre (NFAC), Delhi, which was dated 10.1.2025. The primary contention was regarding the legality of the assessment order passed under section 143(3) of the Income Tax Act, 1961, for the assessment year 2017-18. The appellant argued that the notice under section 143(2) was issued by an officer without jurisdiction, and there was no transfer order under section 127 of the Act for moving the file from ITO, Ward-3, Rohtak to ITO, Rewari. Additionally, the appellant contested the addition of an amount of 734,35,000/- to their income under section 68, which was based on the rejection of audited books of accounts without any adverse material.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314709 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SHYAM MANOHAR SINGH
• Assessee Lawyers: SANJEEV JAIN
• Keywords: Set aside; Opportunity of being heard; Competent authority
• Section: 144; 143(3); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT ITA No. 842/Del/2025 Asstt. Year : 2017-18 JAMANA DASS, VS. ITO, WARD-1, C/O ANU JAIN & COMPANY, REWARI-123401 272-R, FIRST FLOOR, NEAR PALIKA HARYANA COMPLEX, MODEL TOWN, REWARI -123401 HARYANA (PAN: AAKPD8615Q) (Appellant) (Respondent) Appellant by : Sh. Sanjeev Jain, CA Respondent by : Sh. Shyam Manohar Singh, Sr. DR. Date of Hearing 07.05.2025 Date of Pronouncement 07.05.2025 ORDER This appeal by the assessee is emanating from the order of the NFAC, Delhi in Appeal No. ITBA/NFAC/S/250/2024-25/1072056770(1) dated 10.1.2025 on the following grounds:- “1. The Ld. CIT (A) has erred in law and on facts without consider the principal \"interest republicae ut sit finis litium\" (it is interest of the state that there should be an end to a litigation) set aside the case while the fact is that the assessment order passed u/s. 143(3) of the Act on 20.12.2019 for the Ay 2017-18 by learned ITO, Ward-1, Rewari is illegal and bad in law and is liable to be quashed because statutory notice under section 143(2) of the Act, issued by an officer who did not have jurisdiction on the case of the assessee and also statutory notice U/s 143(2) of the Act never issued by the jurisdictional assessing officer before completing the assessment proceedings and therefore, the same is void ab initio. 2 | P a g e 2. The Ld. CIT (A) has erred in law and on facts by set aside the case ignoring the that the assessment order passed by learned ITO, Ward-1, Rewari is without jurisdiction and bad in law, as there is no order u/s 127 of the Act by the competent authority for transferring the file from ITO, Ward-3, Rohtak to ITO, Rewari which makes entire assessment proceeding bad in law and hence the assessment order is liable to be quashed. 3. The Ld. CIT (A) has erred in law and on facts, that Ld. Ao arbitrarily, added an amount of 7 34,35,000/- to the income of the appellant U/s 68 of the Act by rejecting audited books of accounts without brought any adverse material on record only because of his own baseless assumption that, trading activity of the appellant is doubtful and also appellant has made cash payments above twenty thousand rupee. Although Ld. Ao duly considered the business profit as income for computation of income purposes of the appellant. 4. That the appellant craves, leave to add, modify and / or delete any of the ground of appeal at the time of hearing of appeal, if deemed necessary, in the interest of justice and equity.” 2. At the outset, Ld. AR has submitted that AO has passed the exparte order u/s. 144 of the Act and Ld. CIT(A) set aside the order of the AO for making fresh assessment in this case and passed a speaking order. Hence, he submitted that matter may be sent back to the file of the Ld. CIT(A), with the directions to decide the legal issue as well as issue on merits of the case afresh, after giving adequate opportunity of being heard to the assessee. 3. I have heard both the parties and perused the records. Upon careful consideration, I find that AO has passed the exparte order u/s. 144 of the Act and also Ld. CIT(A) has not adjudicated the issues and not passed a speaking order, rather he set aside the order of the AO for making fresh assessment. In view of the aforesaid factual matrix and in the interest of justice, I remit back the issues in dispute to the file of the Ld. CIT(A) with the directions to pass a reasonable and speaking order and decided the issues in dispute viz. judicial as well as merits 3 | P a g e afresh, after giving adequate opportunity of being heard to the assessee, for which ld. DR has no objection. 4. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced in the Open Court on 07.05.2025. Sd/- (MAHAVIR SINGH) VICE PRESIDENT SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Bench "