TAUFIQ AHMED,MURADNAGAR V. INCOME TAX OFFICER WARD 2(2)(4), GHAZIABAD

ITA 3946/DEL/2023

AI Insights

The case involves Taufiq Ahmed, who appealed against the order of the National Faceless Appeal Centre (NFAC), which sustained the addition of cash deposits made by him during the Assessment Year 2012-13. The Income Tax Department had initially detected a substantial cash deposit of Rs. 59,34,300 in Ahmed's bank account, which was significantly higher than his declared turnover. The AO issued notices under sections 147 and 148 of the Income Tax Act, 1961, due to non-compliance in providing the source of the deposit. The NFAC upheld the AO's decision, leading to Ahmed's appeal to the Tribunal. The Tribunal admitted additional evidence from Ahmed and remitted the case back to the AO for a de novo assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781250 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2023
• Appeal Filed On: 30-12-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIPUL KASHYAP
• Assessee Lawyers: ABHISHEK AGARWAL
• Keywords: Opportunity of being heard; Additional evidence
• Section: 147; 148; 144

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 3946/Del/2023 (Assessment Year: 2012-13) Taufiq Ahmed, 115, Moh-Vyapeerayan, 3, Khatikan, Muradnagar, Ghaziabad UP Vs. ITO, Ward-2(2)(4), Ghaziabad (Appellant) (Respondent) PAN: AJUPA6473A Assessee by : Shri Abhishek Agarwal, Adv Shri Varun Goel, Adv Revenue by: Shri Vipul Kashyap, Sr. DR Date of Hearing 05/08/2025 Date of pronouncement 24/10/2025 O R D E R PER SHRI S. RIFAUR RAHMAN: 1. This appeal has been filed by the Assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi [“Ld. NFAC”, for short], dated 01.11.2023 for Assessment Year 2012-13. 2. Brief facts of the case are that the ld AO received information through AIR that assessee has deposited cash of Rs. 59,34,300/- in his savings bank account maintained with Standard Chartered Bank, New Delhi during AY 2012-13. In order to verify the nature and source for the cash deposit, a verification letter was issued and sent to the assessee through speed post. In response, the assessee did not furnish any reply about the nature and source of cash deposit. Since there was no response from the assessee, proceedings u/s 147 was initiated and accordingly, notice u/s 148 Printed from counselvise.com ITA No. 3946/Del/2023 Taufiq Ahmed Page | 2 of the Act was issued to the assessee with the prior approval of ld. Principal Commissioner of Income Tax, Ghaziabad. Subsequently, notice u/s 142 was also issued to the assessee since there was compliance from the assessee. Assessment was completed u/s 144 of the act by adding cash deposits made by the assessee during the year under consideration. 3. Aggrieved with the above order, the assessee preferred an appeal before the NFAC, Delhi and filed grounds of appeal as well as statement of facts. After considering the grounds of appeal and facts on record, the ld CIT(A) observed the fact on record that assessee is a meat seller, however not filed any supporting documents relevant to the submission made by the assessee. He observed that turnover and gross receipts declared by the assessee are Rs. 20,92,828/- while cash deposit is Rs. 59,34,300/-. Since, the assessee has not filed proper documentary evidence before him as well as before the AO, he sustained the addition made by the AO u/s 147 read with section 144 of the Act. 4. Aggrieved, the assessee is in appeal before us raising grounds of appeal and also filed an application for admission of additional evidence under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963. After considering the additional evidence submitted before us, we admit the additional evidence submitted by the assessee and further considering the submissions of both the parties,we are inclined to remit the additional evidence back to the AO to verify the same and redo the assessment de novo after giving proper opportunity of being heard to the assessee. At the same time, we also direct the assessee to comply to the notices of Printed from counselvise.com ITA No. 3946/Del/2023 Taufiq Ahmed Page | 3 the AO and submit all the relevant information for the purpose of completing the assessment. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 24/10/2025. -Sd/- -Sd/- (ANUBHAV SHARMA) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 24/10/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "