NAVEEN KUMAR AGRAWAL,NOIDA V. DEPUTY COMMISSIONER OF INCOME TAX, NOIDA

ITA 3886/DEL/2024

AI Insights

This case involves an appeal by Naveen Kumar Agrawal against the order of the National Faceless Appeal Centre (NFAC), Delhi, which pertained to the Assessment Year 2013-14. The primary issues in the appeal included the validity of the reassessment proceedings under sections 147 and 144B of the Income Tax Act, 1961, and the additions made under sections 68 and 69C of the Act concerning alleged unaccounted income and commission paid for accommodation entry, respectively. The assessee contested the lack of personal hearing, the jurisdiction of the reassessment proceedings, and the legality of the additions made. However, during the hearing, the assessee decided not to pursue the appeal further due to the election of the VSV Scheme, which aims to resolve tax disputes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 27097 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: SONIYA JAIN
• Keywords: Reassessment proceedings; Income from undisclosed sources; Capital Gains; Principle of natural justice; Competent authority; Reason to believe
• Section: 147; 271(1)(c); 68; 69C; 234B

Judgement Text

" ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘E’: NEW DELHI) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No:- 3886/Del/2024 (Assessment Year- 2013-14) Naveen Kumar Agarwal, B-5, Sector-30, Uttar Pradesh. Vs. Deputy Commissioner of Income Tax, Circle 5(2)(1), Noida. PAN No: ABCPA9990J APPELLANT RESPONDENT Assessee by : Ms. Soniya Jain, CA Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 25.02.2025 Date of Pronouncement : 25.02.2025 ORDER PER SUDHIR PAREEK, JM: This appeal by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as ‘the Ld. CIT(A)] order dated 25.06.2024 pertaining to Assessment Year 2013-14. 1.1 The assessee has raised the following grounds of appeal: ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 2 of 6 “1. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre ['CIT(A), NFAC\") erred in not quashing the reassessment order dated 31.03.2022 passed by the National Faceless Assessment Centre (assessing officer') under section 147 r.w.s 144B of the Income Tax Act, 1961 ('the Act'). 2. That on facts and circumstances of the case and in law, the CIT(A) erred in passing the impugned order dated 25.06.2024 without granting personal hearing (either physically or virtually) to the appellant, in gross violation of principles of natural justice. Re: Validity of reassessment proceedings 3. That on the facts and circumstances of the case and in law, the CIT(A) erred in not appreciating that the reassessment proceedings initiated by the assessing officer were without jurisdiction, illegal and bad in law and the reassessment order was liable to be quashed. 3.1. That the CIT(A) erred in not appreciating that the reassessment proceedings is invalid since: (a) the proceedings had been initiated without there being valid \"reason to believe (b) the proceedings were barred by limitation under section 149, (c) legal objections filed were not disposed off by a separate speaking order; (d) copy of complete reasons with details material/ annexures referred therein) were not provided, (c) the extract of reasons so provided was undated; (f) mandatory sanction, as required under section 151 of the Act. if obtained was not provided; and (g) reassessment proceeding were completed in gross violation of principles of natural justice. 3.2. That on the facts and circumstances of the case and in law, initiation of reassessment proceedings by the jurisdictional assessing officer and completion of reassessment proceedings by National Faceless Assessment Centre, an altogether different distinct authority, is illegal and bad in law. Re: addition under section 68 of the Act (without prejudice, merits) 4. That on the facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of Rs. 39,71,201 made by the assessing officer on account of alleged unaccounted income received under the garb of capital gains. Tht the CIT(A) erred in holding / alleging, on mere conjectures, and surmises that the transaction of sale of shares in one M/s tuni Textile Mills Ltd. resulting in long term capital gains was not legitimate / ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 3 of 6 genuine transaction, even though there was no evidence to support such allegation. 4.2. That the CIT(A) erred in drawing adverse inference on the basis of certain ex-parte investigation report made in the case of some third person received by the officer without providing the appellant with a copy of such report, in gross violation of settled principles of natural justice. 4.3. Without prejudice, that the possessing officer erred in invoking provision of section 68 of the Act, which were not at all applicable in the case of the appellant 4.4. Without prejudice, that the assessing officer erred in denying the appellants’ claim for exemption under section 10(38) of the Act to the extent of Re 39.71.201 Re: Addition under section 69C of the Act on account of alleged commission en vale shares of Tuni Textiles Mills Ltd. 5. That the CIT(A) erred on facts and in law in confirming addition of Rs. 79,424 section 69C of the Act on account of alleged commission paid by the appellant in the assessment year under consideration for receiving accommodation entry. Re: Others 6. That on the facts and circumstances of the case and in law, the assessing officer erred in levying interest under section 234B and 234C of the Act. 7 That the assessing officer erred on facts and in law in initiating penalty proceedings under section 271(1)(c) of the Act. The appellant craves leave to add, amend or vary the above grounds of appeal on or before the date of hearing.” 2. We have heard the Ld. Representative of both the parties and perused the material available on record. ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 4 of 6 3. When the matter was called for hearing, the Ld. AR for the assessee stated that the assessee does not wish to pursue the present appeal due to the exercise of the option for availing of the VSV Scheme and, consequently, requested that the withdrawal of the appeal be granted. 4. The Ld. Sr. DR for the Revenue stated that he has no objection to withdraw the appeal as sought on behalf of the assessee. 5. In view of above fact, since the assessee has availed the benefit under Vivad Se Vishwas Scheme, 2024 to settle the matters, therefore, the appeal of the assessee stands disposed of in terms thereof, subject to approval of the same by the competent authority. If at any stage the assessee finds that its declarations are not accepted by Department, the assessee is given liberty to recall this order. Appeal of the assessee is accordingly disposed of. 6. In the result, appeal of the assessee is dismissed. Order pronounced in the Open Court on 25.02.2025 Sd/- Sd/- (PRADIP KUMAR KEDIA) (SUDHIR PAREEK) ACCOUNTANT MEMBER JUDICIAL MEMBER ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 5 of 6 Dated: 25/02/2025. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 3886/Del/2024 Naveen Kumar Agrawal Page 6 of 6 1. Date of dictation of Tribunal order 25.02.2025 2. Date on which the typed draft Tribunal Order is placed before the Dictating Member 25.02.2025 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. The date on which the file goes to the Assistant Registrar for endorsement of the order 12. Date of Despatch of the order "