SABITA GUPTA,BAHADURGARH V. ITO,WARD-2, ROHTAK

ITA 2897/DEL/2024

AI Insights

The case involves Sabita Gupta, the appellant, who contested the additions made to her income for the assessment year 2016-17, amounting to Rs.3,04,92,500 under section 69A of the Income Tax Act, 1961. The additions were based on substantial cash deposits in her savings account, which she did not report in her income tax return. The AO initiated proceedings under section 147 of the Act following information from AIMS and issued notices that the assessee claimed were never served. The CIT(A) upheld the AO's decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal, considering the circumstances and the assessee's lack of opportunity to present her case, decided to remand the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361088 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: RANO JAIN; MANSI JAIN; SAKSHI RUSTOGI; ADVOCATES
• Keywords: Reopening of assessment
• Section: 147; 148; 144; 142(1)

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “जी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी एम. बालागणेश, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER आअसं.2897/िदʟी/2024(िन.व. 2016-17) ITA No.2897/DEL/2024(A.Y.2016-17) Sabita Gupta, 2/331 Aggarwal Colony, Bahadurgarh, Haryana 124507 ...... अपीलाथᱮ/Appellant PAN: AXRPG-0010-E बनाम Vs. NWR-W-(54)(2), Income Tax Officer, Ward-2, Aayakar Bhawan, Opp. Mansarover Park, Rohtak, Haryana 124001 ..... ᮧितवादी/Respondent Assessee by : Ms. Rano Jain, Ms. Mansi Jain & Ms Sakshi Rustogi, Advocates Department by : Shri Manish Gupta, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 20/05/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 20/05/2025 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 17.04.2024, for assessment year 2016-17. 2. Ms. Rano Jain, appearing on behalf of the assessee at the outset submitted that she has not pressing grounds of appeal no. 2 to 5 and 7. In respect of grounds of appeal no. 6 and 8 assailing addition of Rs.3,04,92,500/- made u/s. 69A of the 2 ITA No.2897/Del/2024 (AY 2016-17) Income Tax Act,1961(hereinafter referred to as ‘the Act’), she submitted that the assessee could not appear before the Assessing Officer (AO) as the notice u/s. 148 of the Act and the subsequent notices were never served on the assessee. During First Appellate proceedings, written submissions were filed however, the assessee could not place on record relevant material in support of her submissions. She prayed for restoring the issue back to AO and assured that the assessee would appear before the Assessing Officer and furnish relevant documents to substantiate her contentions. She further submitted that the assessee has prima facie good case in her favour and the balance of convenience is also in favour of the assessee. 3. Per contra, Shri Manish Gupta, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submits that the CIT(A) had given ample opportunity to the assessee to make submissions. The assessee had filed submissions before the CIT(A), now, there is no room for the assessee to reargue the matter before the lower authorities. 4. Both sides heard, orders of the authorities below examined. The ld. Counsel for the assessee has made statement at Bar that she is not pressing grounds of appeal no. 2 to 5 and 7. The assessee in the aforesaid grounds had raised legal issues challenging reopening of assessment. In the light of statement made by ld. Counsel for the assessee, grounds of appeal no. 2 to 5 and 7 are dismissed as not pressed. 5. The other effective grounds raised in appeal on merits of the additions are ground no. 6 and 8. The assessee has not filed return of income for the impugned 3 ITA No.2897/Del/2024 (AY 2016-17) assessment year. However, there were cash deposits to the tune of Rs.3,04,92,500/- in her savings bank account. The AO initiated proceedings u/s. 147 of the Act on the basis of information from AIMS. Notice u/s. 148 of the Act was purportedly issued to the assessee on 30.03.2021. There was no compliance to said notice by the assessee nor the assessee responded to subsequent notices issued to u/s. 142(1) of the Act. Hence, the Assessing Officer was constrained to complete assessment u/s. 144 of the Act. The contention of assessee is that the notices issued by the AO were never served on her. During First Appellate proceedings though the assessee had filed written submissions, nevertheless, no documentary evidence to substantiate the contentions were filed. The CIT(A) rejected assessee's unverifiable submissions. Considering entire facts of the case, I deem it appropriate to restore this matter back to the AO for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 5. The assessee shall respond to the notice(s) served by the AO, without fail. The assessee shall furnish her current/operational email id for service of notice to the AO within 45 days from the date of receipt of this order. 6. In the result, appeal of the assessee is partly allowed for statistical purpose in the terms aforesaid. Order pronounced in the open court on Tuesday the 20th day of May, 2025. Sd/- Sd/- (M. BALAGANESH) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 20/05/2025 4 ITA No.2897/Del/2024 (AY 2016-17) 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.2897/Del/2024 (AY 2016-17) Details Date 1 Draft of dictation of Tribunal order 22.05.2025 2 Draft on which the typed draft Tribunal order is placed before the Dictation Member 23.05.2025 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 "