VIVEKANAND ,NOIDA GAUTOM BUDDH NAGAR V. ITO WARD 3(4) NOIDA GBN, NOIDA GAUTOM BUDDH NAGAR

ITA 2352/DEL/2025

AI Insights

This case involves an appeal by the Assessee, VIVEKANAND, against the order of the CIT(Appeals)-NFAC, Delhi, which sustained a penalty levied under section 271AAC(1) for the Assessment Year 2018-19. The primary contention revolved around the Assessee's claim of not being given an adequate opportunity of hearing, which is a fundamental principle of natural justice. The Tribunal noted that the Assessee's quantum appeal regarding additions made in the assessment order was restored to the Assessing Officer for a fresh decision, implying that the penalty, which was contingent on the assessment, would not survive independently.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783020 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 09-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: RAGHURAJ SINGH
• Keywords: Set aside; Principle of natural justice
• Section: 147; 148; 144

Judgement Text

"ITA No. 2352/DEL/2025 VIVEKANAND 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.2352/Del/2025 िनधा रणवष /Assessment Year:2018-19 VIVEKANAND Village Mamura Gali No.3, Sector-06, Noida, Gautam Budh Nagar, Noida, Uttar Pradesh. PAN No.ATCPV1528K बनाम Vs. INCOME TAX OFFICER, Ward 3(4), Noida, Gautam Budh Nagar Uttar Pradesh. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Shri Raghuraj Singh, Advocate Revenue by Shri Ajay Kumar Arora, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 16.08.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 28.10.2025 आदेश /O R D E R PER C.N. PRASAD, J.M. This is an appeal filed by the Assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 27.02.2025 for the AY 2018-19 in sustaining the penalty levied u/s 271AAC(1) of the Act. 2. Heard rival contentions. Printed from counselvise.com ITA No. 2352/DEL/2025 VIVEKANAND 2 3. At the time of dictation, we noticed that the quantum appeal of the Assessee in ITA No.2294/Del/2025 order dated 24.09.2025 against the additions made in the assessment order passed u/s 147 r.w.s. 144B of the Act was restored to the file of the Assessing Officer to decide afresh after providing adequate opportunity to the Assessee. The relevant portion of the order of the Tribunal is as under: “2. On hearing both the sides, we find that amongst other grounds on merits, the assessee has raised a ground that the assessee was not given an opportunity of hearing in accordance with the principles of natural justice. On going through the records, we find that the assessee’s case was reopened u/s 148 of the Act on the basis of cash deposits of Rs.90,000/- and cash withdrawals of Rs.1,97,09,500/- from Allahabad Bank and having received commission on brokerage of Rs.1,61,480/- from M/s Vakrangee Limited. However, the assessee failed to respond to the notices and assessment was completed u/s 147 r.w.s. 144 of the Act and as the assessee approached the Ld. CIT(A), the appeal was also dismissed in the absence of any submissions from the assessee. The case of the assessee is that the assessee is an agent and on account of his principle he used to receive cash which was deposited or withdrawn. The Ld. AR has submitted that the assessee was not aware of the notices being received on ITBA portal and for that reason, could not defend the case. 3. In the light of the aforesaid, for the ends of justice, the issues on merits are restored to the files of the AO to give the assessee a fresh opportunity of hearing and decide in accordance with law.” 4. Since the additions made in the assessment order passed u/s 147 r.w.s. 144B of the Act were restored to the file of the Assessing Officer the penalty levied u/s 271AAC(1) will not survive and Printed from counselvise.com ITA No. 2352/DEL/2025 VIVEKANAND 3 therefore the penalty order passed by the Assessing Officer is set aside and restored to the file of the Assessing Officer and to decide in accordance with law after providing adequate opportunity to the Assessee. 5. In the result, appeal of the Assessee is allowed for statistical purpose. Order pronounced in the open court on 28.10.2025 Sd/- Sd/- (M BALAGANESH) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 28.10.2025 *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 "