TUFFAIL AHMAD,NEW DELHI V. INCOME TAX OFFICER, NEW DELHI

ITA 5344/DEL/2024

AI Insights

The case involves Tuffail Ahmad, the appellant, who contested an assessment order for the Assessment Year 2012-13 issued by the ITO under Sections 147/144 of the Income Tax Act, 1961. The appellant argued that the notices issued for the assessment were not properly served, and the assessment order was finalized without waiting for the return to be submitted, which denied him a fair opportunity to present his case. The Tribunal agreed with the appellant's arguments, noting the procedural lapses in the issuance and handling of notices and the premature finalization of the assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34431 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: ATUL PURI
• Section: 148; 142(1); 69A

Judgement Text

"P a g e | 1 ITA No.5344/Del/2024 Tuffail Ahmad (ASSESSMENT YEAR: 2012-13) IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, DELHI BEFORE MS.MADHUMITA ROY, JUDICIAL MEMBER ITA No.5344/Del/2024 (Assessment Year: 2012-13) Tuffail Ahmad HN-A-652 Gali No.12, Shree Ram Colony, Rajeev Nagar, Karawal Nagar, Delhi-110094 Vs. Income Tax Officer Wad 59(7) New Delhi- 110001 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AIYPA6822E Appellant .. Respondent Appellant by : Sh. Atul Puri, CA Respondent by : Sh. Sanjay Kumar, Sr. DR Date of Hearing 27.02.2025 Date of Pronouncement 27.02.2025 O R D E R PER MADHUMITA ROY, JM: The instant appeal filed by the assessee is directed against the order passed by the National Faceless Appeal Center (NFAC) Delhi, dated 23.08.2024 arising out of the Assessment Order dated 06.12.2019 passed by the ITO, Ward 59(7) New Delhi under Section 147/144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2012-13. P a g e | 2 ITA No.5344/Del/2024 Tuffail Ahmad (ASSESSMENT YEAR: 2012-13) 2. The assessee was served with the notice date 30.03.2019 under Section 148 of the Act issued by the Ld. AO which was not uploaded in the Income Tax Portal. Subsequently on 22.06.2019 and 05.11.2019 notices were though claimed to have been issued under Section 142(1) of the Act, the same were not served upon the assessee. Only on 19.11.2019 notice under Section 148 of the Act issued and dispatched on 19.11.2019 received by the assessee on 21.11.2019 return of income thereof was duly filed by the assessee as directed on 07.12.2019 within 30 days from the date of receipt of the said notice. Show cause notice was issued on 29.11.2019 by the Ld. AO to the assessee directing him to explain as to why the cash deposit to the tune of Rs.20,25,330/- would not be added in the hands of the assessee under Section 69A of the Act on account of unexplained money. Relevant to mention that the assessee was directed to file the reply on 22.12.2019. 3. At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee vehemently argued in support of his case to this effect that firstly the Ld. AO issued show cause notice on 29.11.2019 i.e. on Friday directing the assessee to file the reply and/or explanation by 02.12.2019 being Monday. Secondly, the order of assessment though issued on 06.12.2019 the same was not uploaded till Yesterday in the Income Tax portal meaning thereby the order so issued by the Ld. AO dated 06.012.2019 is in fact actually not issued on 06.12.2019 otherwise the assessee would not have been able to file the return and upload the same on 07.12.2019; once the assessment order is finalized and uploaded in the portal there is no chance for the assessee to upload any document in the said portal. P a g e | 3 ITA No.5344/Del/2024 Tuffail Ahmad (ASSESSMENT YEAR: 2012-13) 4. Under this facts and circumstances of the matter, he thus, submits that once the assessee filed its return of income on 07.12.2019 within 30 days from the date of receipt of the notice dated 29.11.2019 finalization of the assessment on 06.12.2019 without waiting for the return to be submitted is not sustainable in the eyes of law and therefore liable to be quashed. As such, the assessee has not been given a proper opportunity to explain his case before the Ld. AO effectively. Such facts has not been able to be controverted by the Ld. DR. He, thus, relied upon the order passed by the authorities below. 5. We also note that no deliberation on this particular aspect of the matter as discussed above is forthcoming from the orders passed by the First Appellate Authority in the appeal preferred by the assessee whereby and whereunder addition made by the Ld. AO has been confirmed. Thus, taking into consideration the entire aspect of the mater, we find that the order passed by the Ld. AO confirmed by the First Appellate Authority is illegal, invalid, not sustainable in the eyes of law and thus, quashed. 6. The appeal of the assessee is allowed. Order pronounced in the open court on 27.02.2025 Sd/- (Madhumita Roy ) JUDICIAL MEMBER Dated 27.02.2025 PS: Rohit P a g e | 4 ITA No.5344/Del/2024 Tuffail Ahmad (ASSESSMENT YEAR: 2012-13) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "