TSERING PHUNCHOK,LEH V. INCOME TAX OFFICER, WARD-1, SRINAGAR, SRINAGAR

ITA 205/ASR/2025

AI Insights

The case involves Tsering Phunchok, an appellant, who contested the order of the CIT(A) NFAC, Delhi, which was based on a reassessment by the Income Tax Department under sections 147, 144, and 144B of the Income Tax Act, 1961. The reassessment was initiated due to flagged information suggesting various financial transactions by the assessee, with no return on record. The primary contention in the appeal was the non-receipt of notice under section 148 of the Act, which the assessee argued was not properly addressed. The Tribunal's decision focused on the need for a thorough examination of the exemption claim under section 10(26) and the procedural validity of the notices issued.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783861 (ITAT-AMRITSAR)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 07-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Reassessment proceedings; Unexplained investment
• Section: 147; 148; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (PHYSICAL HEARING) BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER I.T.A. No. 205/Asr/2025 Assessment Year: 2018-19 Tsering Phunchok, Taru Gyamdu House, Taroo Old Road, Leh, J &K 194101 [PAN: BXDPP 2813D] (Appellant) Vs. Income Tax Officer, Ward-1, Srinagar (Respondent) Appellant by Respondent by : : Sh. Anil Kumar Jain, Adv. Sh. Mrs. Roshanta Kumari Meena, CIT D.R. Date of Hearing Date of Pronouncement : : 23.09.2025 10.11.2025 ORDER Per Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of the ld. CIT(A) NFAC, Delhi dated 10.01.2025 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the Assessment Unit, ITD u/s 147 r.w.s. 144 r.w.s. 144B of the Act, 1961 dated 19.02.2024. Printed from counselvise.com 2 I.T.A. No. 205/Asr/2025 Assessment Year: 2018-19 2. The grounds of appeal taken by the assessee relates to the non-receipt of notice u/s 148 of the Act 61, and the main objection of the assessee is that the Ld. CIT(A) has remanded the matter back to the AO without adjudication considering the above issue regarding non receipt of statutory notice by the assessee. 3. The brief facts of the case are that the assessee has claimed to be a member of the Scheduled Tribe as defined in clause (25) of article 366 of the Constitution and residing in the Ladakh region of the State of Jammu and Kashmir, and his income is claimed to be exempted u/s 10(26) of the Act 61. 4. On the basis of flagged information from DIT (systems) CBDT, in accordance with risk management strategy, that the assessee has indulged in various financial transactions, and in absence of any return on record, reassessment proceedings were initiated vide notice u/s 148 dated 4th April, 2022, (as per procedure). 5. In absence of any response to various notices issued by the department in course of assessment proceedings, the assessment was completed ex-parte u/s 147/ 144 rws 144B of the Act, on a total income of Rs. 37.77 crores, (which included unexplained cash deposits in J & K Bank, and in State Bank of India, and profits derived from execution of contract works, with Hindusthan Petroleum Corporation, plus income from bank interest and other unexplained investments). Printed from counselvise.com 3 I.T.A. No. 205/Asr/2025 Assessment Year: 2018-19 6. The matter carried in first appeal, has been set aside, back to the files of the AO, as per provisions of 251(1)(a) of the Act , for fresh assessment ( the original order being passed u/s 144 ) , after considering all documentary evidences now filed relating to the claim of exemption u/s 10(26) of the Act 61, and regarding service of notice it is observed by the CIT(A) in para 6.1 of his order , that notices issued dated 12/01/2024 and 01/02/2024 has been responded to by the assessee . 7. The Ld. DR relied on the order of the first appellate authority. 8. We are of the opinion that the claim of the exemption u/s 10(26) of the Act 61, needs to be examined by the AO in relation to all documentary evidences to be produced and since the order is passed ex-parte u/s 144, the Ld. first appellate authority is perfectly justified in setting aside the matter for fresh assessment as per provisions of law, and we uphold the said order. 9. In the result, the appeal of the assessee is dismissed being infructuous. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 10.11.2025 Sd/- Sd/- (Dr. M. L. Meena) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: Printed from counselvise.com 4 I.T.A. No. 205/Asr/2025 Assessment Year: 2018-19 (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order Printed from counselvise.com "