MAMTA TREHAN,DELHI V. ACIT CIRCLE 63(1), DELHI

ITA 708/DEL/2025

AI Insights

This case involves an appeal by Mamta Trehan against the order of the National Faceless Appeal Centre (NFAC), which confirmed additions to her income for the Assessment Year 2017-18. The additions included disallowed expenses and unexplained cash deposits during the demonetization period. The ITAT found that the NFAC had dismissed the appeal due to the assessee's non-compliance in submitting required documents and explanations. The Tribunal decided to remand the case back to the NFAC, providing the assessee a final opportunity to present her case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716879 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 06-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: OBSERVING
• Keywords: TDS
• Section: 143(3)

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.708/DEL/2025 Assessment Year: 2017-18 Mamta Trehan A-43, Friends Tower, Sector-9 Rohini, Delhi -110085 PAN No.ACQPT7254F Vs. ACIT Circle – 63 (1) Delhi (APPELLANT) (RESPONDENT) Appellant by None Respondent by Sh. Om Parkash, Sr. DR Date of hearing: 18/08/2025 Date of Pronouncement: 18/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi/ Commissioner of Income Tax (Appeals) [hereinafter referred to as “CIT(A)”] vide order dated 31.12.2024 pertaining to A.Y. 2017-18 arising out the assessment order dated 20.12.2019 under section 143(3) of the Income Tax Act, 1961, (in short ‘the Act’). 2. The assessee has raised following grounds of appeal: Printed from counselvise.com 2 1. “On the facts and in the circumstances of the case the learned CIT(Appeal) has erred in confirming the addition of Rs.24,61,535/- as disallowed expenses (payment made to transporter) being 30% of Rs.82,05,117/- u/s. 40a(ia) of IT Act, 1961. Whereas TDS was made evidence submitted.” 2. “On the facts and circumstances the learned CIT(A) has erred in confirming an addition of Rs.32,45,000/- deposited Banks during the demonetization period taking as income u/s. 69A of the IT Act 1961. Whereas the cash was deposited out of the cash available in the Books of A/c of the appellant and charged tax u/s. 115BBE of I.T Act. 1961. 3. The assessee is an individual doing proprietory business under the name and style of M/s. Design Graphics, engaged in manufacturing, supplying and installation of advertising products. The firm deals in illuminated, signs, ACP Glow signs, LED signage, Road signs Retail Visual identity, display unit, High most signage and kiosk counter and mainly deals with Indian Oil Corporation Ltd. Hindustan Petrolium Corporation Ltd. and Bharat Petrolium Corporation Ltd. That the total sale declared by the assessee is Rs.15,52,72,416/-and errection and installation charges amounting to Rs.2,0046,517/- after excluding excise duty. The assessee has filed the return of income declaring total income of Rs. 54,58,320/-on 15-10- 2017. The case of the assessee was selected under scrutiny through CASS and notice was issued on 24-09-2018. The Assessing officer completed the assessment after making the addition on the various heads. Printed from counselvise.com 3 4. Aggrieved by the order of the AO, the assessee filed the appeal before Ld. NFAC/CIT(A) who vide order dated 31.12.2024 dismissed the appeal of the assessee by observing as under: During the appellate proceedings, in spite of filing elaborate grounds of appeal and being provided with adequate opportunities of filing explanations and supporting documents and appellant preferred to remain silent by not availing the opportunities provided. 5. Being aggrieved the order of the Ld. NFAC the assessee filed the appeal before the Tribunal.Ld.AR of the assessee has submitted that without being heard to the assessee the impugned order was passed by the Ld. NFAC. 6.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 but submitted grounds of appeal before the Ld. NFAC. 6. We have heard the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. NFAC the assessee did not file his submissions before the authority, for which the appeal was dismissed in non-compliance by the Ld. NFAC. 7. Since in the instant case the Ld. NFAC has dismissed the appeal in non-compliance therefore, considering the totality of Printed from counselvise.com 4 the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. NFAC with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. NFAC and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 18 .08.2025. Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Neha, Sr. PS Date: 22.08.2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "