SHYAMLAL,NOIDA V. INCOME TAX OFFICER, WARD 5(3)(4), GAUTAM BUDH NAGAR

ITA 4436/DEL/2025

AI Insights

The case involves an appeal by Shyamlal against an order passed by the Income Tax Officer (ITO) under section 250 of the Income Tax Act, 1961, which added Rs. 52,12,819 to the appellant's income on account of unexplained credit entries and cash deposits in his bank accounts. The appellant's initial appeal to the CIT(A) was unsuccessful due to non-attendance. The ITAT considered the appellant's arguments regarding his remote location and lack of legal guidance, ultimately deciding to remand the case for a fresh assessment while imposing a cost for the misuse of judicial resources.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791752 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 17-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: RAVI PRATAP MALL
• Keywords: Ignorance of law

Judgement Text

"ITA No.4436/Del/2025 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”NEW DELHI BEFORE SHRIMAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.4436/Del/2025 िनधा रणवष /Assessment Year: 2017-18 SHYAMLAL, H.No.340, Vill., Sharafabad, Sector-73, Noida, Gautam Budh Nagar, NOIDA. PAN No.DRLPS6795D बनाम Vs. INCOME TAX OFFICER, Ward 5(3)(4), Aayakar Bhawan, A-2D, Sector-24, (Gautam Budh Nagar), Noida, Uttar Pradesh. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri Ravi Pratap Mall, Advocate Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 10.12.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 10.12.2025 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereinafter “the Act”), dated 29.07.2024, passed by the Ld. CIT(A)- NFAC, Delhi. In this case the Ld. AO is seen to have passed an ex parteorder and added Rs.52,12,819/- on account of credit entries and cash deposits in the bank accounts of the assessee, which were allegedly unexplained. Aggrieved with this action of Ld. CIT(A) the assessee approached the CIT(A) where also he could not succeed largely on account of non-attendance of the assessee before the Ld. CIT(A). Printed from counselvise.com ITA No.4436/Del/2025 2 1.1 Further aggrieved, the assessee has approached the ITAT with grounds which challenge the denial of opportunity and also challenge the additions on merit. 2. Before us, the Ld. AR argued that the assessee was located in a village which was remote and hence the notices sent to him could not be responded to due to ignorance of law and lack of proper guidance from a tax practitioner. The Ld. AR stated that the assessee has a good case on merit and the same could be establish even before the ITAT on the basis of documents available with the Ld. AR. 2.1 The Ld. DR relied on the orders of the authorities below and stated that the mere fact that the assessee was located in a village did not mean that he would be totally cut off from all tax matters and thus, his lack of attention to such matters was being sought to be unjustifiably explained. 3. We have carefully considered the averments of Ld. AR/DR and have gone through the records. It is a settled position that normally ignorance of law cannot be treated as an excuse for escaping the duties cast on a tax payer vis-a-vis the taxation laws. It is not evident as to how an assessee who is conducting a business in this day and age is unaware of e- mails and such other means of communications. Be that as it may, in the interests of substantive justice, we are inclined to give the assessee another chance by setting aside the impugned order and remanding this Printed from counselvise.com ITA No.4436/Del/2025 3 matter back to the file of the Ld. AO for fresh assessment. However, seeing that considerable Government resources have been expended in dealing with this matter by the authorities below, we deem it fit to levy of cost of Rs.10,000/- payable to Delhi High Court Legal Services Committee. This cost shall be deposited before 31.01.2026. 4. In the result, this appeal is allowed for statistical purposes. Order pronounced in the open court on 10.12.2025 Sd/- Sd/- (MAHAVIR SINGH) (SANJAY AWASTHI) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 12.12.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "