SHASHWAT KEDIA,NEW DELHI V. ITO WARD 35(4), NEW DELHI

ITA 3402/DEL/2024

AI Insights

The case involves Shashwat Kedia, who appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, which had dismissed his appeal ex-parte. The original assessment was reopened under section 148 of the Income Tax Act, 1961, leading to an ex-parte order under section 144, adding INR 2,09,17,017 as unexplained investment in shares and mutual funds. The assessee, claiming to be a minor and under legal guardianship, objected to the reopening and the assessment procedures, which were not adequately addressed by the AO or the CIT(A). The Tribunal found procedural improprieties in the handling of the assessee's objections and the issuance of notices, leading to the setting aside of the matter to the AO for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34207 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: SUNIL KUMAR TYAGI
• Keywords: Set aside
• Section: 147; 148; 144; 250

Judgement Text

"ITA No.3402/Del/2024 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “G” BENCH: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3402/Del/2024 [Assessment Year : 2010-11] Shashwat Kedia, H.No.7, Atta-ur Rehaman Lane, Civil Lines, New Delhi-110054. PAN-BHZPK8463N vs ITO, Ward-35(4), New Delhi. APPELLANT RESPONDENT Appellant by Shri Sunil Kumar Tyagi, CA Respondent by Shri Sahil Kumar Bansal, Sr.DR Date of Hearing 04.02.2025 Date of Pronouncement 04.02.2025 ORDER PER MANISH AGARWAL, AM : The present appeal has been filed by the assessee against the order dated 26.03.2024 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi in DIN & Order No. ITBA/NFAC/S/250/2023- 24/1063384303(1) u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 30.12.2017 passed u/s 147 of the Act pertaining to assessment year 2010-11. 2. Brief facts of the case are that the case was re-opened by way of issue of notice u/s 148 of the Act on 31.03.2017 and the assessment was completed ex- parte u/s 144 while making addition of INR 2,09,17,017/- by holding the investment in shares and Mutual funds as unexplained. It was submitted during the course of assessment proceedings, a detailed reply was submitted vide letter dated 31.07.2017 wherein it was claimed that the assessee is a minor and his ITA No.3402/Del/2024 Page | 2 guardianship was granted by the Court wherein one Shri Mahesh Dutt Sharma was appointed as “legal guardian”. The Ld.AR for the assessee submits that as per Indian Majority Act, 1875, the assessee was a minor during the year under appeal and has objected the re-opening of the assessment. However, the said objections were disposed off by the AO at the fag end of the proceedings on 28.12.2017 and no order was served upon the assessee. The Ld.AR further submits that on the very same day, a show cause notice was issued to explain the source of the investment of INR 2,09,17,017/- and the assessee was asked to give his explanation on the very next day i.e. 29.12.2017 failing which the order was passed ex-parte on 30.12.2017. Against this order, the appeal was filed before the Ld.CIT(A) wherein in Form No.35, it was specifically stated that notices should not be sent through e-mail. The Ld.CIT(A) despite of requests for physical notice, has sent the notices through online and ultimately passed the appellate order ex-parte, dismissing the appeal of the assessee. Under these circumstances, the Ld.AR for the assessee submits that the appeal of the assessee may be restored to the file of AO so that necessary details could be filed and the matter could be decided on merits. 3. On the other hand, Ld. Sr. DR for the Revenue supports the order of the lower authorities and submits that the assessee has not availed the opportunity given to him therefore, the order of the lower authorities deserves to be upheld. 4. We have heard the rival submissions and perused the material available on record. After considering the arguments put forth by the parties, we find that in the instant case, the objections raised by the assessee with respect to the initiation of the proceedings u/s 148 of the Act, have not been disposed off well within the time ITA No.3402/Del/2024 Page | 3 and the assessee was not provided proper opportunity to explain his case. Under these circumstances, the matter is set aside to the file of the AO. The assessee is given liberty to raise all the objections and at the same time, the AO is directed to decide such objections by passing a speaking order in accordance with law. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 04.02.2025. Sd/- Sd/- (VIKAS AWASTHY) JUDICIAL MEMBER *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 "