S G JOSHI (HUF),DELHI V. ITO, WARD 29(1), DELHI

ITA 1059/DEL/2025

AI Insights

The case involves S. G. Joshi (HUF) appealing against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which dismissed their appeal based on Section 249(4)(b) of the Income Tax Act, 1961. The primary contention was the incorrect application of this section, which is applicable only when no return has been filed by the assessee. The assessee had filed a return declaring an income under 'income from other sources', which was acknowledged by the Assessing Officer in the assessment order. The Tribunal heard arguments from both parties and decided to set aside the CIT(A)'s order, remanding the case for a fresh decision on its merits, ensuring the assessee is given an opportunity to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771968 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR JAIN
• Assessee Lawyers: RANO JAIN
• Keywords: Set aside; Opportunity of being heard; Unexplained investment
• Section: 147

Judgement Text

"1 ITA No. 1059/Del/2025 S. G. Joshi Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘E’ NEW DELHI) BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 1059/Del/2025 (A.Y. 2014-15) S. G. Joshi (HUF) B-4/33, Safdarjung Enclave, New Delhi-110029 PAN: AAIHS9281F Vs. Income Tax Officer, Circle 29(1) New Delhi Appellant Respondent Assessee by Ms. Rano Jain, Adv Revenue by Sh. Dheeraj Kumar Jain, Sr. DR Date of Hearing 21/08/2025 Date of Pronouncement 28/08/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (‘Ld. CIT(A)’/’NFAC’ for short), dated 28/12/2024 pertaining to the Assessment Year 2014-15. 2. The Ld. Assessee's Representative submitted that the Ld. CIT(A) committed error in invoking the provision of Section 249(4)(b) of the Income Tax Act, 1961 ('Act' for short) and erred in dismissing the Appeal of the Assessee ignoring the fact that the Assessee has duly filed the return of income. Thus, sought for allowing the Appeal of the Assessee. Printed from counselvise.com 2 ITA No. 1059/Del/2025 S. G. Joshi Vs. ITO 3. Per contra, the Ld. Department's Representative relying on the order of the Ld. CIT(A) submitted that the Ld. CIT(A) committed no error in dismissing the Appeal, accordingly, sought for dismissal of the Appeal. 4. We have heard both the parties and perused the material available on record. An assessment order came to be passed against the Assessee on13/05/2023 u/s 147 of the Act by making an addition of Rs. 2,23,52,140/- on account of unexplained investment. The Assessee filed an Appeal before the Ld. CIT(A), challenging the assessment order dated 13/05/2023, which has been dismissed by invoking provision of Section 249(4)(b) of the Act. 5. The provision of Section 249(4)(b) of the Act is applicable only when no return has been filed by the Assessee. In the present case, the Ld. A.O. himself in first para of the assessment mentioned that ‘Return declaring an income of Rs. 5,89,590/- under the head “income from other sources”’. Therefore, the invocation of provision of Section 249(4)(b) of the Act in dismissing the Appeal by the Ld. CIT(A) is found to be erroneous. Therefore, the order of the Ld. CIT(A) is hereby set aside and we remand the matter to the file of the Ld. CIT(A) with a direction to decide the first Appeal on its merit. Needless to say, the Assessee shall be provided with opportunity of being heard to the Assessee. Printed from counselvise.com 3 ITA No. 1059/Del/2025 S. G. Joshi Vs. ITO 6. In the result, Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 28th August, 2025 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 28.08.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "