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Facts
The assessee's appeal is against an order from the CIT(A) which arose from the Assessing Officer's order. The AO made an addition of Rs. 1,05,57,424 to the returned income of Rs. 29,88,360 on account of unexplained money. The assessee denied liability and claimed the addition was made without proper procedure and opportunity.
Held
The Tribunal condoned the delay in filing the appeal, finding sufficient cause. The CIT(A) had set aside the assessment order and referred the case back to the AO for a fresh assessment. The Tribunal concurred with this action, directing the AO to provide opportunities and consider submissions.
Key Issues
Whether the assessment order was passed correctly and with due process. Whether the CIT(A) was justified in setting aside the assessment for fresh adjudication.
Sections Cited
69A, 115BBE, 234A, 234B, 234C, 234D, 251(1)(a), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Date of hearing: 20/08/2025 Date of Pronouncement: 20/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] vide order dated 27.12.2024 arising out of the order of the Assessing Officer vide order dated 10.03.2023 pertaining to A.Y. 2018-19.
The assessee has raised the following grounds in appeal:-
That the appellant denies its liability to be assessed at total income of Rs. 1,05,57,424 as against returned income of Rs. 29,88,360/- and accordingly denies its liability to pay tax and interest demanded thereon of Rs. 1,34,86,866.
2. That having regard to the facts and circumstances of the case the Ld. appellate authority has erred in law and on facts in making an addition of an amount of Rs. 1,05,57,424/- to the returned income on account of unexplained money under section 69A of the Act read with section 115BBE of the Act
That having regard to the facts and circumstances of the case the Ld. appellate authority has erred in law and on facts in making an addition of an amount of Rs. 1,05,57,424/- to the returned income, and raising demand for tax and interest of Rs. 1,34,86,866 by applying incorrect provisions of the Income Tax Act.
That having regard to the facts and circumstances of the case, the Ld. appellate authority has erred in law and on facts in making the above additions without giving an adequate opportunity of being heard and by making incorrect observations and by not observing the principles of natural justice.
5. That having regard to the facts and circumstances of the case the 5 impugned order has been issued without applying prescribed procedure as per Act and rules made thereunder.
That having regard to the facts and circumstances of the case, 6 the Faceless Assessment Unit has erred in law and on facts in charging interest u/s 234A, 234B, 234C, 234D.
7. That the appellant craves the leave to add, modify, amend or 7 delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.
Whether there is any delay in filing of appeal (if yes, 11 please attach application seeking condonation of delay)
The Ld. AR for the assessee filed the application for 3. condonation of delay. The Ld. AR further submitted that he could not file this appeal within the prescribed time limit because his chartered accountant had not informed him about the rejection order. The email address registered on the income tax portal was that of his chartered accountant, and he never informed him about such an order. We have gone through the application for the condonation 4. of delay of assessee and after hearing the Ld. DR we find that there is sufficient cause for not filing the appeal within prescribed time limit. Hence, the delay is condoned and appeal is admitted for adjudication.
None present on behalf of the assessee.
6. The Ld. CIT(A) has observed in his order as under :- (i) I have considered the submissions of the appellant and perused the material available on record. In para 3 of page No. 2 of the assessment order, the learned AO stated that “On going through return of income filed by the assessee for AY 2018-19, it is noticed that assessee has received foreign remittance which has not been offered to tax in the year under consideration aggregating to Rs. 1,05,57,424/-. The assessee has not offered any explanation.” (ii) On going through the submissions filed by the appellant, I am of the considered opinion that the issues contained in the response of the appellant require extensive enquiries and verification. It would best serve in the interest of justice if the appellant gets another chance to represent his case before Ld. AO and thereupon Ld. AO can verify the submission of the appellant and conduct necessary enquiries to gather material for a true and correct estimation of income of the appellant. (iii) As per the newly inserted proviso to section 251(1)(a) of the Act, Commissioner (Appeals) in case of order of assessment made u/s. 144 of the Act, may set aside such assessment and refer the case back to the Ld. AO for making a fresh assessment. This proviso has been inserted in the Act w.e.f. 1.10.2024. The said proviso to section 251(1)(a) of the Act is reproduced as under: “251. (1) In disposing of an appeal, the Commissioner (Appeals)] shall have the following powers— in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment; 1. [Provided that where such appeal is against an order of assessment made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment;] Page 5 of 6 AGZPM5730G- SAMTA MITTAL A.Y. 2018-19 ITBA/NFAC/S/250/2024-25/1071622728(1) (iv) Thus, as per the new provisions coming into effect from 01.10.2024 the CIT(A) have been granted powers to set-aside assessments to Ld. AO in cases where assessment order has been issued u/s 144. As in the present case the assessment order has been issued u/s 144 by the Ld. AO and there are issues which need to be further examined and investigated by the Ld. AO, it’s a fit case for set-aside of assessment made by the Ld. AO. In view of the above facts and changes in the Act, as enumerated above, it is felt that the consideration of the submissions filed by the appellant for the first time in the appellate proceedings, are germane to the correct appreciation of the issues under deliberation. (v) Therefore, the assessment order passed by the Ld. AO u/s. 144 of the Act dated 10.03.2023 is hereby set aside for making fresh assessment, de-novo, after taking into account the above submissions filed by the appellant. Needless to say that the Ld. AO should, while conducting the set aside proceedings, give proper opportunities of representation to the appellant in view of principles of natural justice and take into account any further submissions which it has to file during the course of the said proceedings. The Ld. AO should also conduct all necessary enquiries to verify the submissions filed by the appellant. The appellant is also directed to comply with all the notices/correspondences issued by the Ld. AO. (vi) Therefore, all grounds filed by the appellant are thus remanded to the Ld. AO and the case is set aside for re-adjudication by the Ld. AO afresh.
7. The appeal is dismissed for statistical purposes as the case is set aside to the file of the AO to make fresh assessment.
The Ld. DR submitted that the Ld. NFAC has already set aside the assessment and matter sent back to AO making fresh assessment, denovo after considering the submission submitted by the assessee.
We have heard the Ld. DR and gone through the material available on record. We find that the case is already been sent to the AO for making fresh assessment so that the appeal has no force and liable to be dismissed.
In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 20.08.2025.