MANOJ KUMAR SINGHAL,DELHI V. ACIT, CIRCLE 30(1), DELHI, NEW DELHI

ITA 5776/DEL/2024

AI Insights

The case involves an appeal by Manoj Kumar Singhal against the order of the Commissioner of Income-tax (Appeals), NFAC, Delhi, which arose from an assessment order passed by the AO under section 143(3) of the Income Tax Act, 1961. The AO had made an addition of Rs.12,27,589 to the assessee's income, alleging unexplained purchases under section 69C of the Act. The assessee contended that the NFAC order was passed without providing an opportunity of hearing. The Tribunal found merit in the assessee's contention and noted that the NFAC merely mentioned the issuance of notices without substantive examination of the assessment records or the grounds raised. Consequently, the Tribunal set aside the assessment and remanded the matter back to the AO for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397978 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Assessee Lawyers: PRANAV YADAV
• Keywords: Set aside; Assessment record
• Section: 143(3); 69C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: E : NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.5776/Del/2024 Assessment Year: 2017-18 Manoj Kumar Singhal, 132, Mohammadpur, Nauroji Nagar, South West Delhi, Delhi – 110 029. PAN: APGPS7268P Vs ACIT, Circle-30(1), Delhi. (Appellant) (Respondent) Assessee by : Shri Pranav Yadav, Advocate Revenue by : Shri Dheeraj Kumar Jain, Sr. DR Date of Hearing : 02.06.2025 Date of Pronouncement : 02.06.2025 ORDER PER ANUBHAV SHARMA, JM: This appeal by the appellant assessee is against the order dated 16.10.2024 of the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, for short) in Appeal No.CIT(A), Delhi-10/10980/2019-20 arising out of the appeal before it against the order dated 12.12.2019 passed u/s 143(3) of the ITA No.5776/Del/2024 2 Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle- 30(1), Delhi (hereinafter referred to as the Ld. AO). 2. On hearing both the sides, we find that amongst other grounds of appeal, the assessee has raised a ground that the impugned order of the NFAC is passed without giving opportunity of hearing. We find that the assessee had filed the return declaring an income of Rs.42,71,050/-. The AO has completed the assessment at an income of Rs.54,98,639/- after making an addition of Rs.12,27,589/- on account of alleged unexplained purchases u/s 69C of the Act. The ld. AR has filed before us copy of show cause notice issued by the AO to which a reply was filed submitting that the assessee is not aware of the source from which the AO has derived information about the alleged unexplained purchases. It appears that based on the invoice value of import shown in export- import data of CBIC, the AO had arrived at the conclusion of mismatch. However, without satisfying the assessee and providing information, the assessment was completed. In this background, we find that the order of the ld. NFAC merely mentions of the issuance of notices and without going on the merits and examination of the assessment records qua the grounds raised, has dismissed the appeal of the assessee. 3. In the light of the aforesaid, we are of the considered view that the matter requires to be examined in correct perspective by giving a fresh opportunity of hearing to the assessee by the AO himself. ITA No.5776/Del/2024 3 4. Consequently, the ground No.1, 3, 4 and 5 are sustained. The appeal is allowed for statistical purposes. The impugned assessment is set aside with consequential effects and the issues on merits are restored to the files of the AO to give a fresh opportunity of hearing to the assessee as per law and decide the issues again. Order pronounced in the open court on 02.06.2025. Sd/- Sd/- (SHAMIM YAHYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 02nd June, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "