SH.RAKESH,GURGAON V. INCOME TAX OFFICER, GURGAON

ITA 918/DEL/2024

AI Insights

The case involves an appeal by the assessee, Shri Rakesh, against the order of the CIT(Appeal)/NFAC, Delhi, which dismissed his appeal due to non-prosecution. The assessee had initially filed a return for the assessment year 2011-12 under section 148 of the Income Tax Act, declaring an income of Rs. 1,58,518. However, the AO completed the assessment under section 144, treating a cash deposit of Rs. 78,25,000 as unexplained cash credit under section 68 of the Act. The CIT(A) upheld the AO's decision, leading to the current appeal. The Tribunal noted the procedural lapses in notifying the assessee and decided to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471544 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Keywords: Opportunity of being heard; Unexplained cash credit; Principle of natural justice
• Section: 148; 144; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA NO. 918/Del/2024 A.YR. : 2011-12 SHRI RAKESH C/O M.R. SAHU, HOUSE NO. 651, 1ST FLOOR, SECTOR-10A, NEAR G.D. GOENKA PUBLIC SCHOOL, GURGAON-122001 HARYANA (PAN: AODPR7631B) VS. ITO, WARD 3(4), GURGAON (APPELLANT) (RESPONDENT) Appellant by : None Respondent by : Ms. Harpreet Kaur Hansra, Sr. DR Date of hearing : 22.01.2025 Date of pronouncement : 06.02.2025 ORDER PER SHAMIM YAHYA, AM : The Assessee has filed the instant Appeal against the Order of the Ld. CIT(Appeal)/NFAC, Delhi dated 01.01.2024, relating to assessment year 2011-12 on the following grounds:- 1. That based on facts of the case, and provisions of law, the CIT(A) erred in dismissing the appeal due to non prosecution ignoring 2 | P a g e adjournment of application and grant of more time petition filed before him, thus the Principles of natural justice offended, accordingly, CIT(A) order dated 1.1.2024 deserves to be set asdie. 2. That based on facts of the case, and provisions of law, the CIT(A) erred in dismissing the appeal due to non prosecution without issuing the notices in the current Email [e-mail] reflected int eh lasts income tax returns, thus principles of natural justice offended, accordingly, CIT(A) order dated 1.1.2024 not sustainable in the eyes of law. 3. That the assessee craves the right to amend, add, delete, replace, all or any of the grounds of appeal either during the course of hearing or at any time before hearing of this appeal. 2. Brief facts of the case are that the assessee filed his return for assessment year 2011-12 u/s. 148 of the Act declaring income Rs. 1,58,518/- filed on 5.2.2019. Assessment has been completed u/s. 144 of the Act and AO determined the income of Rs. 78,25,000/- by treating the cash deposit of Rs. 78,25,000/- as unexplained cash credit u/s. 68 of the Act. 3. Upon assessee’s appeal, Ld. CIT(A) dismissed the appeal of the Assessee by affirming the action of the AO. 4. Against the aforesaid order, Assessee is in appeal before us. 5. We have heard the Ld. DR and perused the records. None appeared on behalf of the assessee, despite issue of notice, therefore, we are proceeding exaparte qua the assessee. It was the contention of the Assessee made in the grounds of appeal that Ld. CIT(A) dismissed the appeal of the assessee for non- prosecution ignoring adjournment of application of grant of more time and also without issuing the notices in the current email which was reflected in the latest income tax return. 6. Ld. DR relied upon the orders of the authorities below. 3 | P a g e 7. Upon careful consideration, we find that in this case AO has passed the exparte order u/s. 144 of the Act and Ld. CIT(A) has also dismissed the appeal of the assessee for non-prosecution. However, the assessee’s contention was that non-prosecution of appeal before the Ld. CIT(A) was occurred due to non- issue of the notices at the current email id. In our considered opinion, in the interest of justice, assessee deserves an opportunity to properly canvass his case before the income tax authorities. Therefore, in view of the aforesaid facts and circumstances of the case and in the interest of justice, the issues in dispute are remitted back to the file of the AO with the directions to decide the same afresh, after giving adequate opportunity of being heard to the assessee. 8. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced in the Open Court on 06/02/2025. SD/- (VIMAL KUMAR) SD/- (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER SRBHATNAGAR Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar "