QAISAR JAN,SRINAGAR V. THE ITO, WARD-4, ANAND

ITA 1777/AHD/2024

AI Insights

This case involves an appeal by Qaisar Jan against the order of the National Faceless Appeal Centre (NFAC) for the assessment year 2017-18. The primary contention revolves around the procedural fairness and jurisdictional authority in the assessment process. The assessee argued that the orders passed under sections 250 and 144 of the Income Tax Act, 1961, were unjust and violated the principles of natural justice, as they were made without proper notice and opportunity to be heard. The Income Tax Officer had made an addition of Rs. 13,58,650 to the assessee's income, citing unexplained cash deposits during the demonetization period. The CIT(A) upheld this assessment, leading to the current appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833772 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 10-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMESHWAR P. MEENA
• Assessee Lawyers: MOHD. IQBAL
• Keywords: Opportunity of being heard; Tax effect; Principle of natural justice
• Section: 144; 142(1)

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD Before Ms. Suchitra Kamble, Judicial Member Qaisar Jan, Reshanhar Nawakadal, Srinagar, 190002, Jammu & Jammu, India PAN: AXEPM7047C (Appellant) Vs The Income Tax Officer, Ward-4, Anand, (Respondent) Assessee by: Shri Mohd. Iqbal, C.A. Revenue by: Shri Rameshwar P. Meena, Sr. D.R. Date of hearing : 02-02-2026 Date of pronouncement : 04-02-2026 आदेश/ORDER This is an appeal filed against the order dated 29-07- 2024 passed by National Faceless Appeal Centre (NFAC), for assessment year 2017-18. 2. The grounds of appeal are as under:- “1. The action of the learned Commissioner of Income Tax--- (Appeals) - NFAC in passing the order under section 250 of the Income Tax Act, 1961, against the assessee, is unjust, arbitrary and deserves to be quashed. 2. That on the facts and circumstances of the case, the order passed by the learned CIT(A) under Section 250 and by the Ld AO under section 144 of the Act is bad, both in the eyes of law and on facts, having been passed without giving assessee an ITA No. 1777/Ahd/2024 Assessment Year 2017-18 Printed from counselvise.com I.T.A No. 1777/Ahd/2024 Qaisar Jan., A.Y. 2017-18 2 opportunity of being heard in violation of principle of natural justice. 3. That In view of the section 250(4) and 250(5) of the Act, the Ld.CIT(A) has acted in contravention of the law while dismissing the case on account of non-prosecution, without discussing/adjudicating the merits of the case. 4. BECAUSE, even after observing in the appellate order that the appeal has been taken up for decision on merits but the Ld. CIT (A) has not considered the ground no 2 to 12 (ANNEXURE ATTACHED). 5. That the notice issued under Section 142(1) and assessment order passed under Section 144 are illegal bad in law and without jurisdiction as no notice under section 142(1) was served on the assessee of the income tax act 1961. Accordingly notice issued under section and all subsequent proceedings including orders of Ld AO are void ab initio. 6. That whole of the assessment proceedings is void and bad in law as Income-tax Officer, Ward No. 4, ANAND did not have jurisdiction making the assessment questionable. 7. Assessee craves right to add, alter or modify any grounds of appeal before or at the time of hearing of the appeal. Total tax effect (see note below)” 3. The assessee is an individual and has not filed return of income. The assessee is engaged in the business of selling handicraft item. The assessee’s case was identified in cash transactions, 2016. Notice u/s. 142(1) of the Income Tax Act was issued on 10-03-2018. The reminder letter was issued on 14-06-2019. The Assessing Officer observed that during the demonetization period i.e. from 9th Nov, 2016 to 30th December, 2016, the assessee deposited cash of Rs. 13,58,650/-. The assessment was passed u/s. 144 thereby making an addition of Rs. 13,58,650/- as cash deposits in bank account u/s. 69A of the Act. Printed from counselvise.com I.T.A No. 1777/Ahd/2024 Qaisar Jan., A.Y. 2017-18 3 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that there is a delay of 13 days, the delay is condoned. 6. The ld. A.R. further submitted that due to unavoidable circumstances, the assessee could not file the details before the A.O. as well as before the CIT(A). Therefore, the ld. A.R. requested that the matter may be remanded back to the file of the Assessing Officer for proper verification and adjudication of the issues. 7. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 8. Heard both the parties and perused all the relevant materials on record. It is pertinent to note that the Assessing Officer has issued only one notice and has not stated anywhere in the assessment order that the assessee was served with the notice. Beside this, the assessee was not given adequate time to file the details by the CIT(A). Therefore, it will be appropriate to remand back this matter to the file of the Assessing Officer for verifying the documents/evidences to be filed before the Assessing Officer and adjudicate the issues as per Income Tax Act. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Printed from counselvise.com I.T.A No. 1777/Ahd/2024 Qaisar Jan., A.Y. 2017-18 4 9. In the result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open court on 04-02-2026 Sd/- (Suchitra Kamble) Judicial Member a.k. Ahmedabad : Dated 04/02/2026 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "