SHRI ASHWANI GARG,HARIDWAR V. ITO, W-1(3)(1), HARDWAR, HARDWAR

ITA 57/DDN/2024

AI Insights

The case involves Ashwani Garg, the appellant, contesting an assessment order passed under section 144 of the Income-tax Act, 1961, by the ITO, Ward-1(3)(1), Haridwar, which was later upheld by the NFAC. The assessment included additions of Rs 21,90,500 as unexplained cash deposits and Rs 2,80,000 as estimated net profit. The NFAC dismissed the initial appeal for non-prosecution without addressing the merits. The Tribunal found that the NFAC had not adjudicated the issues on their merits and thus restored the case to the NFAC for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34908 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. S. RANA
• Keywords: Opportunity of being heard
• Section: 144; 69A; 145(3)

Judgement Text

"Page | 1 THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER (Through Video Conferencing) ITA No. 57/DDN/2024 (Assessment Year: 2017-18) Ashwani Garg, Plot NO. 106-106A, Sector- 6A, Sidcul, Haridwar, uttarakhand Vs. ITO, Ward-1(3)(1), Haridwar (Appellant) (Respondent) PAN:ALCPG7518A Assessee by : None Revenue by: Shri A. S. Rana, Sr. DR Date of Hearing 17/03/2025 Date of pronouncement 02/04/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 57/DDN/2024 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in appeal No. ITBA/NFAC/S/250/2023- 24/1054390346(1) dated 17.07.2023 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 26.12.2019 by the Assessing Officer, ITO, Ward-1(3)(1), Hardwar (hereinafter referred to as ‘ld. AO’). 2. At the outset, there is a delay in filing of appeal by the assessee before us by 227 days. Considering the reasons adduced in the condonation petition, we find that the assessee was prevented from sufficient cause in not filing the appeal in time. Accordingly, in the interest of substantial ITA No. 57/DDN/2024 Ashwani Garg Page | 2 justice, the delay is hereby condoned and appeal of the assessee is admitted and taken up for adjudication. 3. The first issue to be decided in this appeal is as to whether the Learned NFAC was justified in upholding the addition of Rs 21,90,500/- made under section 69A read with section 115BBE of the Act on account of cash deposits in the facts and circumstances of the instant case. Further the Learned NFAC had also confirmed the addition of Rs 2,80,000/- towards estimated net profit of the assessee, which is also challenged before us on the ground that the Learned NFAC had not understood the real nature of the transaction. 4. None appeared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of this appeal on hearing the Learned DR and based on materials available on record. We find that the Learned AO completed the assessment under Section 144 of the Act on 26-12-2019 adding the sum of Rs. 21,90,000/- on account of cash deposits made in Central Bank of India as unexplained money and further estimating the net profit at the rate of 8% on the business and added a sum of Rs. 2,80,000/- after rejecting the books of accounts in terms of Section 145(3) of the Act. The assessee preferred an appeal before the Learned NFAC. None appeared on behalf of the assessee before the Learned NFAC and the Learned NFAC dismissed the appeal for non-prosecution without independently deciding the issue on merits. 5. As stated supra, on perusal of the order of the ld NFAC, we find that the ld NFAC had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Hence, in the interest of justice and fairplay, we deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to ITA No. 57/DDN/2024 Ashwani Garg Page | 3 mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 02/04/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 02/04/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "