KRISHAN KUMAR BHATNAGAR,GHAZIABAD V. THE ITO WARD, 2(1)(3), GHAZIABAD, GHAZIABAD

ITA 2585/DEL/2025

AI Insights

The case involves Krishan Kumar Bhatnagar, the appellant, who contested the orders passed by the Income Tax Officer and subsequently by the National Faceless Appeal Centre (NFAC). The dispute arose from an assessment order for the assessment year 2016-17, which was initiated under section 148 of the Income-tax Act, 1961, concerning alleged cash payments for purchasing immovable property. The Assessing Officer added a substantial amount to the assessee's income, which was upheld by the NFAC. The Tribunal found procedural lapses in the issuance of notices to the assessee, leading to the decision to remand the case back to the Assessing Officer for a fair hearing.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834530 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 21-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE. LEARNED AUTHORIZED; RAJESH KUMAR DHANESTA
• Keywords: Opportunity of being heard
• Section: 147; 148; 144

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”, DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL, MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT, MEMBER ITA No.2585/DEL/2025 Assessment Year: 2016-17 KRISHAN KUMAR BHATNAGAR 11-E, 162, Nehru Nagar, Ghaziabad, UP-201001 (PAN: ACCPB0643C) V Income Tax Officer, Ward 2(1)(3), Ghaziabad (APPELLANT) (RESPONDENT) Appellant by Sh. None Respondent by Sh. Rajesh Kumar Dhanesta Sr. DR Date of hearing: 03/02/2026 Date of Pronouncement: 06/02/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 21.2.2025 pertaining to A.Y. 2016- 17 arising out the assessment order passed u/s.147 r.w.s.144 of the Income-tax Act, 1961, (in short ‘the Act’). 2. The brief facts of the case are that assessee is an individual and fetching income from house property, profession and other sources. The proceeding for assessment year 2016-17 initiated under section 148 on the issue of cash payment to purchase of Printed from counselvise.com 2 immovable property pointed out by the Investigation Wing and assessed the income of Rs. 1,31,66,780/- under section 144 read with section 147 by making the addition of Rs. 1,14,99,120/-. 3. Aggrieved the order of the AO, the assessee preferred the appeal before the Ld. NFAC who vide his order dated 21.2.2025 dismissed the appeal. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal. 4. None is present for assessee. Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the Ld. NFAC. The appeal was rightly rejected by the Ld. NFAC. 5. We have heard the Ld. DR and perused the material available on record. It was the contention of the assessee in the grounds of appeal that Ld. CIT(A) has erred in confirming the action of the AO by not providing proper opportunity of being heard as show cause notice was issued on 29.3.2022 and order passed on 30.3.2022. It was further contended that CIT(A) erred in confirming the action of the AO by issuing notice under section 148 of the Act were never being served on the assessee. The assessee has not received any notice prior to show cause notice thus, opportunity of being heard is not provided. Therefore, considering the totality of the facts and circumstances of the Printed from counselvise.com 3 case and in the interest of justice, we deem it proper to restore the issues to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issues as per fact and law. The assessee is also directed to appear before the Assessing officer and co- operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court 06.02.2026. Sd/- Sd/- ( MANISH AGARWAL) ( SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) SR BHATNAGGR Date: 06.02.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "