MINAKSHI SHARMA,DELHI V. ITO, WARD 59(6), DELHI

ITA 1926/DEL/2024

AI Insights

This case involves an appeal by Minakshi Sharma against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs.12,55,495 to her income for the assessment year 2011-12. The addition was based on unexplained cash deposits in her bank account. The assessee contended that the notices for assessment were not served due to her change of address and provided explanations for the source of the deposits, which included proceeds from handicraft sales and gifts from relatives. The CIT(A) dismissed her appeal without commenting on the merits. The ITAT, after considering the circumstances and the explanations provided, partially allowed the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47107 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Keywords: Condonation of delay
• Section: 147; 148; 144; 13; 69A

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1926/िदʟी/2024 (िन.व. 2011-12) ITA No.1926/DEL/2024 (A.Y.2011-12) Minakshi Sharma, A-612, Dilshad Colony, East Delhi, Delhi 110095 PAN: BSUPS-4065-G ...... अपीलाथᱮ/Appellant बनाम Vs. Commissioner of Income Tax (Appeals) National Faceless Appeal Centre, Delhi ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Shri Sanjay Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 14/01/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 09/04/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 05.10.2023, for assessment year 2011-12. 2. The appeal is time barred by 142 days. The assessee has filed an application seeking condonation of delay in filing of appeal. The reason for delay in filing of appeal is on account of medical exigencies. The assessee to substantiate the reason has annexed medical records with the application. After perusal of the same, I am satisfied that delay in filing of appeal is not intentional or for want of action, but was for the reasons stated in application which appears to be bonafide. The delay 2 ITA No.1926/Del/2024 (AY 2011-12) in filing of appeal is thus, condoned and appeal is admitted for adjudication on merits. 3. The solitary issue raised by the assessee in appeal is against confirmation of addition of Rs.12,55,495/- on account of cash deposits in saving bank account of the assessee with Punjab National Bank, Dilshad Colony, Delhi. No return of income was filed by the assessee u/s. 39 of the Income Tax Act, 1961(hereinafter referred to as 'the Act'). On the basis of AIR/CIB information that cash amounting to Rs.12,55,495/- is deposited in saving bank account no. 3058000109230498 with Punjab National Bank, the Assessing Officer (AO) issued notice u/s. 148 of the Act on 23.03.2018 to the assessee. Despite repeated notices no return was filed by the assessee, the AO completed assessment invoking provisions of section 144 of the Act making addition of Rs.12,55,495/-. Aggrieved, against the assessment order dated 19.12.2018 passed u/s. 147 r.w.s 144 of the Act. The assessee filed appeal before the CIT(A). The assessee explained before the CIT(A) that the notices issued by the AO were never served on the assessee as the assessee had shifted her residence from Durgapuri, Delhi 110032 to Dilshad Colony, East Delhi 110095, since long. She further explained that the cash deposits in the bank during Financial Year 2010-11 are from sale proceeds of handicraft items, earlier cash withdrawals from the bank and amount received from relatives on occasion of festivals. The assessee furnished complete detail of deposits and withdrawals in the bank before the CIT(A). The CIT(A) rejected assessee's contentions with regard to non service of notice and without commenting on merits of the addition dismissed appeal. 4. Shri Sanjay Kumar representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR 3 ITA No.1926/Del/2024 (AY 2011-12) submits that the assessee is a non filler of return of income, hence, explanation furnished by the assessee should not be accepted. 5. Submissions made by ld. DR heard and orders of the authorities below examined. The short issue in appeal is against addition of Rs.12,55,495/- on account of alleged unexplained cash deposits in the bank account. The AO on the basis of AIR/CIB information had issued notice u/s. 148 of the Act to the assessee on the address available in the PAN database. However, the notices sent were never served upon the assessee as the assessee after her marriage had shifted from old address available with the Department to new location in Dilshad Colony, East Delhi and is residing there since last 25 years. Nevertheless, the assessee had furnished complete details of the cash deposits and withdrawals during Financial Year 2010- 11 before the CIT(A). The assessee is purportedly dealing in handicrafts items for the last 10 years and the cash deposits are from sale proceeds of the handicrafts. The explanation furnished by the assessee is plausible, hence, accepted. Considering the fact that the assessee has not fully substantiated with documentary evidence the source of cash deposits in bank account, the addition u/s. 69A of the Act is restricted to Rs.2,50,000/-. Thus, the assessee gets the relief of Rs.10,05,495/-. 6. Before parting I would like to observe that if the assessee/appellant has so far not updated postal address and email ID in the PAN database of the Department, the assessee is directed to update the email ID and postal address in the records of the Department for proper communication from the Department in future. 4 ITA No.1926/Del/2024 (AY 2011-12) 7. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on Wednesday the 09th day April, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 09.04.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI 5 ITA No.1926/Del/2024 (AY 2011-12) Details Date 1 Draft of dictation of Tribunal order 24.02.2025 2 Draft on which the typed draft Tribunal order is placed before the Dictation Member 24.02.2025 3 Date on which the typed draft Tribunal order is placed before the other Member 4 Date on which the approved draft Tribunal order comes to the Sr.PS/PS 5. Date on which the fair Tribunal Order is placed before the Dictating Member for pronouncement 6. Date on which the signed order comes back to the Sr.PS/PS 7. Date on which the final Tribunal order is uploaded by the Sr.PS/PS on official website 8 Date on which the file goes to the Bench Clerk alongwith Tribunal Order 9 Date of killing off the disposed of files on the judiSIS portal of ITAT by the Bench Clerks 10 Date on which the file goes to the Supervisor (Judicial) 11 Date on which the file goes for Xerox 12 Date on which the file goes for endorsement 13 Date on which the file goes to the superintendent for checking 14 The date on which the files goes to the Assistant Registrar for endorsement of the order 15 Date on which the file goes to dispatch section 16 Date of dispatch of the order "