NAWAL SINGH,DHANI CHITTERSAN BHORKALAN GURGAON V. ASSESSING OFFICER, OFFICE OF THE INCOME TAX WARD GURGAON

ITA 5509/DEL/2025

AI Insights

The case involves an appeal by Nawal Singh against the order of the National Faceless Appeal Centre (NFAC), which upheld the assessment made by the Income Tax Officer (ITO), Ward 3(1), Gurgaon. The assessment for the year 2012-13 was based on unexplained cash deposits of Rs. 15.40 lakhs in the assessee's bank account during the Financial Year 2011-12. The AO treated these deposits as unexplained money under Section 69A of the Income Tax Act, 1961, due to the absence of any explanation or evidence from the assessee. The CIT(A) also dismissed the appeal for lack of evidence. The Tribunal, after hearing the parties, decided to remand the matter back to the AO, allowing the assessee another opportunity to present his case, while imposing a cost for the delay in filing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785489 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 06-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: SAKET SHARMA
• Keywords: Set aside; Opportunity of being heard
• Section: 147

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘SMC’: NEW DELHI) BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT ITA No:- 5509/Del/2025 (Assessment Year- 2012-13) Nawal Singh, Dhani Chittersan Bhorkalan, Gurgaon. Vs. Assessing Officer, Office of Income Tax, Ward 3(1), Gurgaon. PAN No: DDEPS9874N APPELLANT RESPONDENT Assessee by : Shri Saket Sharma, CA Revenue by : Shri Manoj Kumar, Sr. DR Date of Hearing : 27.10.2025 Date of Pronouncement : 27.10.2025 ORDER PER MAHAVIR SINGH, VP: This appeal by the Assessee is arising out of the order of National Faceless Appeal Centre (NFAC) [hereinafter referred to as ‘CIT(A)’], Delhi, in appeal no. CIT(A), Gurgaon-1/12123/2019-20 vide order dated 14.05.2024. Assessment was framed by ITO, Ward 3(1), Gurgaon for the Assessment Year 2012-13 under Section 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide his order dated 26.11.2019. Printed from counselvise.com ITA No.- 5509/Del/2025 Nawal singh 2 2. At the outset, it is noticed that this appeal is time barred by 402 days and the assessee before me contended that the delay is due to non-receipt of the physical copy of the order of the Ld. CIT(A), which is dated 14.05.2024. It was contended that the date of service via mail is 20.05.2024, however, the assessee, being an illiterate person and an agriculturist, could not view the mail and when penalty notice was received by assessee he came to know that assessee’s appeal is dismissed by CIT(A). Thereafter, the assessee contacted his present Counsel and immediately the appeal was filed by 06.09.2025 for a delay of 402 days. 3. I find the cause for delay reasonable, and condoned the delay and the appeal is admitted for adjudication. 4. I have heard both the parties and gone through the facts and circumstances of the case. I noticed that the order of the AO is practically ex parte, as the assessee could not explain or file document in regard to cash deposits of Rs. 15.40 lakhs made in his bank account during the Financial Year 2011-12. The AO, therefore, treated the cash deposits in assessee’s bank account of Rs. 15.40 lakhs as unexplained money u/s 69A of the Act, as he has no alternative to framed the assessment to the best of his judgment based on the material available on record. Even before the Ld. CIT(A), the assesssee did not file any evidence, and the Ld. CIT(A) dismissed the appeal in the absence of any evidence or explanation in regard to this cash deposits of Rs. 15.40 lakhs in assessee’s bank account. Printed from counselvise.com ITA No.- 5509/Del/2025 Nawal singh 3 5. Now, before me, the Ld. Counsel for the assessee prayed that he will file the relevant details in the case of the assessee and the matter be restored to the file of the AO. As the assessee failed to comply with the notices before both the AO or the Ld. CIT(A), I deem it appropriate to impose a cost of Rs. 25,000/-, on the assessee, to be paid to the Legal Aid Authority, Delhi High Court, upto 15.12.2025. The assessee will show the challan to the AO, who will take up the assessment proceedings. Accordingly, I set aside the orders of the lower authorities and remand this issue to the file of the AO for adjudication after affording opportunity of being heard to the assessee, in accordance with law. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 27.10.2025 Sd/- (MAHAVIR SINGH) VICE PRESIDENT Dated: 31/10/2025 Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "