SAMIDH SHARMA,DELHI V. ITO, WARD- 59(3), NEW DELHI

ITA 6479/DEL/2017

AI Insights

The case involves Shri Samidh Sharma, the appellant, contesting an order from the Commissioner of Income Tax (Appeals)-19, New Delhi, which added INR 3,19,08,123 to his income as unverifiable/non-genuine unsecured loans and arbitrarily disallowed 10% of total business expenditures. The appellant also sought a decision on the initiation of penalty proceedings, which was left undecided by the CIT(A). The Tribunal noted the appellant's failure to comply with various notices during the assessment and appellate proceedings, leading to an ex-parte decision by the lower authorities. In the interest of justice, the Tribunal set aside the matter for a fresh assessment while imposing a cost for non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705446 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APPELLANT; DHEERAJ KUMAR
• Assessee Lawyers: V. RAJKUMAR
• Keywords: Set aside; Reasonable cause; Depreciation; Initiation of penalty proceedings
• Section: 144

Judgement Text

"ITA No.6479/Del/2017 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “G” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.6479/Del/2017 [Assessment Year : 2012-13] Shri Samidh Sharma, E-345, Nirman Vihar, Vikas Marg, Delhi-110092. PAN-AMMPS5713L vs ITO, Ward-59(3), New Delhi APPELLANT RESPONDENT Appellant by Shri V.Raj Kumar, Adv. Respondent by Shri Dheeraj Kumar Jaiswal, Sr DR Date of Hearing 30.06.2025 Date of Pronouncement 30.06.2025 ORDER PER MANISH AGARWAL, AM : The present appeal has been filed by the assessee against the order dated 01.03.2017 passed by Ld. Commissioner of Income Tax (A)-19, New Delhi [“Ld.CIT(A)”] in Appeal No.47/15-16 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 20.03.2015 passed u/s 144 of the Act pertaining to assessment year 2012-13. 2. The assessee has raised following grounds of appeal:- 1. “BECAUSE the Ld. CIT(A)-19 has erred both on facts and in law by adding in income of Rs. 3,19,08,123/- claimed as unsecured loans as unverifiable/ non-genuine. 2. BECAUSE the Ld. CIT(A)-19 has erred both on facts and in law by arbitrary disallowing 10% of total expenditures ITA No.6479/Del/2017 Page | 2 claimed by it in business, barring depreciation, during the Assessment Year. 3. BECAUSE the Ld. CIT(A)-19 has erred by not pronouncing its decision over initiation of Penalty proceedings under various sections even though the appellant has taken a ground of appeal before him, thereby, leaving this issue open and undecided. 4. BECAUSE there was a reasonable cause for Appellant being prevented from not perusing his appeal before Ld. CIT(A)-19 and proceedings before Assessing Officer and craves leave of the Tribunal for remanding the matter back in the interest of justice. 5. The appellant craves leave to add to alter, amend or delete above grounds of appeal.” 3. Brief facts of the case are that the assessee e-filed his return of income on 26.07.2013, declaring NIL income and claimed current year loss of INR 51,71,676/-. The case was selected for scrutiny under CASS. The notice u/s 143(2) of the Act was issued on 05.09.2014 but no compliance was made on behalf of the assessee. Thereafter, various notices were issued to the assessee for furnishing the requisite details but there was no compliance on behalf of the assessee as and when called for by the lower authorities. Even before Ld.CIT(A), no compliance was made despite issuing various notices for hearing. 4. Heard both the parties and perused the material available on record. We find that the case of the assessee is decided ex-parte by the lower authorities as no effective compliance was made. Though, it is fault on the part of the assessee in not making compliances ITA No.6479/Del/2017 Page | 3 however, in the larger interest of justice, the matter is set aside to the file of the AO with the direction to decide the issue denonvo after providing various opportunities to the assessee. Further, it is seen that the assessee has not participated before the lower authorities therefore, a cost of INR 5,000/- is levied looking to the conduct of the assessee which is to be paid to Legal Aid Authority of Hon’ble Delhi High Court. The assessee is directed to produce the copy of receipt of INR 5,000/- before the AO during the course of set aside proceedings and further direct to file all the necessary evidences in support. With these directions, the appeal of the assessee is partly allowed for statistical purposes. 5. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 30.06.2025. Sd/- Sd/- (ANUBHAV SHARMA) JUDICIAL MEMBER Date-03.07.2025 *Amit Kumar, Sr.P.S* (MANISH AGARWAL) ACCOUNTANT MEMBER Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "