M/S MUKESH SINGLA & SONS HUF,NEW DELHI V. DCIT, DELHI

ITA 837/DEL/2025

AI Insights

The case involves M/s. Mukesh Singla & Sons (HUF), who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an assessment order for the year 2014-15, which was based on the reopening of the assessee's case under sections 147, 144, and 144B of the Income Tax Act, 1961. The reopening was prompted by information suggesting that the assessee had claimed exempt long-term capital gains from share transactions, which were allegedly unaccounted money. Despite multiple notices, the assessee failed to comply, leading to the dismissal of their appeal for non-prosecution by the CIT(A). The Tribunal, considering the circumstances and the principles of natural justice, decided to remit the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315609 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice; Search and seizure
• Section: 147; 148; 144; 142(1)

Judgement Text

"ITA No.837/Del/2025 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.837/Del/2025 [Assessment Year : 2014-15] M/s. Mukesh Singla & Sons (HUF), 64, Bhagwan Budha Co-operative Society, Second Floor, Pitampura, New Delhi-110034. PAN–AAIHM2755E vs DCIT, Circle-28(1), Delhi APPELLANT RESPONDENT Appellant by Dr. Rakesh Gupta, Adv. Respondent by Shri Om Prakash, Sr.DR Date of Hearing 14.05.2025 Date of Pronouncement 14.05.2025 ORDER PER MANISH AGARWAL, AM : The present appeal has been filed by the assessee seeking to assail the First Appellate order dated 22.01.2025 of Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] in Appeal No.NFAC/2013-14/10110491 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 29.03.2022 passed u/s 147 r.w.s. 144 r.w.s. 144B of the Act pertaining to assessment year 2014-15. 2. Brief facts of the case are that the assessee had filed return of income for A.Y. 2014-15 on 13.08.2014 by declaring an income of Rs.5,76,470/-. Subsequently, it was observed from the information and details available on INSIGHT Portal that the assessee had made transactions in shares on which Long term capital gain was claimed as exempt. It was also mentioned in the said information that the assessee’s own unaccounted money was camouflaged as exempt long term capital gain. ITA No.837/Del/2025 Page | 2 3. A search and seizure action was carried out on 25.02.2021 in the case of Tradenext Securities Limited. During the search and post search investigations, it was found that the assessee and his family members have taken long term capital gain (LTCG), exempt u/s 10(38) through investment in shares of INDUSIND Bank. On the basis of above information and on the material available on records, the case of the assessee was reopened after invoking provisions of section 147 by way of issue of notice under section 148 on 31.03.2021 but there was no compliance on behalf of the assessee. Since there was no response from the assessee, the AO issued notice under section 142(1) on 26.11.2021 calling for information by 09.12.2021. However, there is no response from the assessee. Therefore, the assessee was provided another opportunity by way of notices issued under section 142(1) dated 11.02.2022 requiring assessee to furnish information but again there was no response on behalf of the assessee. The assessee had not furnished any information/evidences as and when called for. 4. At the outset, it is seen that the appeal of the assessee is dismissed by the Ld. CIT(A) for non-prosecution. Before us, the Ld. AR submitted that the Ld. CIT(A) has issued notices which were not complied on behalf of the assessee either before the AO or before the CIT(A). He thus prayed that the matter may be sent back to the file of the AO for fresh adjudication. 5. Per contra, the Ld. Sr. DR has not objected to the request of the assessee. 6. We have heard the contentions of both the parties and perused the material available on record. After considering the arguments, we find that in the instant case, due compliance could not be made before the lower authorities on behalf of the assessee. Under these circumstances, as a principle of the natural justice, one more opportunity is given to the assessee and the matter is remitted back to the file of the AO with direction to decide the issue denovo afresh after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to participate in assessment proceedings before the AO. With these directions, the case is allowed for statistical purposes. ITA No.837/Del/2025 Page | 3 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 14.05.2025. Sd/- Sd/- (MAHAVIR SINGH) VICE PRESIDENT Date:-21.05.2025 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "