WAQF DARGAH RAJJAB SALAR,BAHRAICH V. INCOME TAX OFFICER-1, BAHRAICH

ITA 22/LKW/2025

AI Insights

The case involves Waqf Dargah Rajjab Salar, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, which dismissed their appeal due to a 33-day delay in filing. The original assessment by the Income Tax Officer (ITO) involved unexplained cash deposits and interest income, leading to a reassessment under sections 147 and 144 of the Income Tax Act, 1961. The ITO added the unexplained amount to the assessee's income and initiated penalty proceedings. The NFAC's dismissal of the appeal was primarily procedural, not addressing the substantive issues raised by the appellant. The Tribunal, considering the procedural dismissal, restored the matter to the NFAC for a decision on the merits, contingent upon the proper explanation of the delay by the appellant.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471430 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA
• Assessee Lawyers: SAURABH GUPTA
• Section: 147; 148; 194A; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.22/LKW/2025 Assessment Year: 2018-19 Waqf Dargah Rajjab Salar C/o Kazi Faizur Rehman C-90, Sector M Aliganj, Lucknow Vs. ITO-1 Bahraich - New TAN/PAN:AAAAW7179H (Appellant) (Respondent) Appellant by: Shri Saurabh Gupta, C.A. Respondent by: Shri Sanjeev Krishna Sharma, D.R. Date of hearing: 20 02 2025 Date of pronouncement: 24 02 2025 O R D E R PER SUDHANSHU SRIVASTAVA, J.M.: This appeal has been preferred by the assessee against the order dated 25.11.2024, passed by the ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2018-19. 2. The brief facts of the case are that the Income Tax Department was in possession of information that the assessee had deposited Rs.56,01,100/- in bank accounts and had earned interest of Rs.13,04,782/- received under section 194A of the Income Tax Act, 1961 (hereinafter called “the Act’) during the year under consideration. The assessee had not filed return of ITA No.22/LKW/2025 Page 2 of 5 income for the year under consideration. The AO, therefore, reopened the case of the assessee under section 147 of the Act to ascertain the genuineness of the source of cash deposits made by the assessee and issued notice under section 148 of the Act. However, the assessee did not file return of income in response to notice under section 148 of the Act. The AO, thereafter, issued various notices to the assessee. However, the assessee failed to respond to the notices issued by the AO. The AO, therefore, completed the assessment under section 147 read with 144 of the Act, assessing the total income of the assessee at Rs.69,05,882/- after making an addition of Rs.69,05,882/- under section 69A of the Act. 2.1 The Assessing Officer also invoked the provisions of section 115BBE of the Act and also initiated penalty proceedings under sections 271AAC(1), 271F and 272A(1)(d) of the Act, separately. 3. Aggrieved, the Assessee preferred an appeal before the NFAC, which dismissed the appeal of the assessee for the reason of there being a delay of 33 days in filing of the appeal before the NFAC. ITA No.22/LKW/2025 Page 3 of 5 4. Now, the assessee has approached this Tribunal challenging the dismissal of its appeal by the NFAC by raising the following grounds of appeal: 1. That the Appellate Order passed by the Ld. CIT (Appeals) NFAC was passed without affording proper opportunity to the appellant and therefore, the same is void ab initio and bad in law. 2. The Ld. CIT(A) has erred in law and on facts and circumstances of the case in not condoning the delay of 33 days in filing of appeal without appreciating the genuity of the case of the appellant. 3. The Ld. CIT(A) has failed to appreciate that the appellant was never served any notice for the assessment and the appellant came to know about the assessment proceedings only after receiving the final assessment order. 4. The Ld. CIT(A) has failed to appreciate the submissions placed by the appellant and has dismissed the appeal without considering the merits of the case. 5. Without prejudice, the Ld. Commissioner of Income Tax (Appeals) NFAC has erred in law and on facts and circumstances of the case in confirming the addition on account of Unexplained Money u/s 69A amounting to Rs.69,05,882/- without appreciating the facts of the case. 6. That the order passed by the Ld. Commissioner of Income Tax (Appeals) is against merits, circumstances and legal aspects of the case. ITA No.22/LKW/2025 Page 4 of 5 7. That the appellant craves leave to add, alter, amend or withdraw any or all the grounds of appeal on or before the date oh hearing. 5. During the course of hearing before us, the Ld. Authorized Representative for the assessee (Ld. A.R.) submitted that the NFAC had dismissed the appeal of the assessee for the reason of delay of 33 days in filing of the appeal before the NFAC and that the NFAC had not dealt with the issues in dispute on merits. The Ld. A.R. prayed that the matter may be restored to the file of the NFAC for deciding the issues in dispute on merits of the case. 6. The Ld. Senior D.R. had no objection to the restoration of appeal to the file of the NFAC. 7. We have heard both the parties and have also perused the material on record. Looking into the facts of this case, we restore this file to the Office of the NFAC with the direction to give an opportunity to the assessee to explain the delay in filing the appeal and, thereafter, if the delay is properly explained, condone the delay and decide the appeal on merits after providing an opportunity to the assessee to present its case. We also caution the assessee to fully comply with the directions of the NFAC in the set-aside proceedings when called upon to do so, failing ITA No.22/LKW/2025 Page 5 of 5 which, the NFAC would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the assessee. 8. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open Court on 24/02/2025. Sd/- Sd/- [ANADEE NATH MISSHRA] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:24/02/2025 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR By order Assistant Registrar "