VIRENDER KUMAR,SAMASPUR KHALSA V. ITO, CIVIC CENTRE

ITA 1325/DEL/2025

AI Insights

The case involves an appeal by Virender Kumar against an ex-parte order from the Commissioner of Income Tax (Appeals), which was based on alleged non-compliance and failure to respond to notices regarding unexplained cash deposits in the assessee's bank accounts. The Assessing Officer had initiated proceedings under sections 147 and 148 of the Income Tax Act, 1961, following information about substantial cash deposits. The assessee, being illiterate and unaware of the proceedings, did not receive or respond to the notices, leading to an assessment under section 144. The Tribunal found that the CIT(A) erred in dismissing the appeal without considering the merits, as required by law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361234 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: MANOJ PAHWA; CHARTERED ACCOUNTANT
• Keywords: Set aside; Non compliance
• Section: 147; 148; 144; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1325/िदʟी/2025 (िन.व. 2012-13) ITA No.1325/DEL/2025 (A.Y.2012-13) Virender Kumar, 249, Samaspur Khalsa, Ujwa, Delhi 110073 PAN: ASFPK-4031-L ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Ward-43(1), Civic Centre, Minto Road, New Delhi 110002 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri Manoj Pahwa, Chartered Accountant ŮितवादीȪारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 21/05/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 21/05/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 13.11.2024, for assessment year 2012-13. 2. Shri Manoj Pahwa, appearing on behalf of the assessee submits that on the basis of information received through AIR and CIB, the Assessing Officer (AO) initiated proceedings u/s. 147 r.w.s 148 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) on the ground that there were cash deposits to the tune of Rs.33,62,790/- in the saving bank accounts of the assessee during Financial Year 2 ITA No.1325/Del/2025 (AY 2012-13) 2011-12. The AO purportedly issued notices u/s. 148 and 142(1) of the Act. The said notices were never served on the assessee physically. The assessee is an illiterate who neither understands English nor is aware about operating an email account. Thus, there was no participation by the assessee during assessment proceedings. The AO invoked the provision of section 144 of the Act and completed assessment vide order dated 08.12.2019. Against said assessment order the assessee filed appeal before the CIT(A). Even before the CIT(A) there was no representation from the assessee’s side as the Counsel for the assessee never shared with the assessee about proceedings before the CIT(A). The ld. AR prayed for an opportunity to make submissions before the lower authorities. The ld. AR submitted that the assessee has prima facie good case in his favour and would be able to explain source of cash deposits in his bank account during the relevant period. 3. Per contra, Shri Manoj Kumar representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. He submitted that the assessee is non compliant. Despite repeated notices, the assessee neither appeared before the AO nor responded to the notices of the CIT(A). 4. Both sides heard, orders of the authorities below examined. This appeal by the assessee is against ex-parte order by the CIT(A). The CIT(A) has dismissed appeal of assessee in limine for want of prosecution. It is a settled legal principle that the CIT(A) cannot dismiss appeal of the assessee for non prosecution. The provision of section 250 of the Act mandates the CIT(A) to pass orders on merits only. 3 ITA No.1325/Del/2025 (AY 2012-13) 5. Considering entire facts of the case and documents on record, I observe that the assessee was not able to present his case either before the AO or the CIT(A), therefore, I deem it appropriate to restore this matter back to the Assessing Officer for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Wednesday the 21st day May, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 21.05.2025 NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "