DEEPTI CHAWLA,GURGAON, HARYANA vs. ITO, CIVIC CENTRE, DELHI
What did the Tribunal hold?
The Tribunal found that the assessee's grievance regarding the AO's finding of no documentary evidence needed verification. Consequently, the matter was remitted back to the AO for fresh adjudication after providing the assessee an adequate opportunity to be heard and submit evidence.
What were the facts?
The assessee's appeal concerns assessment year 2011-12, arising from an assessment order passed under Section 147/148. The primary dispute revolves around the AO's rejection of the assessee's reply to a show cause notice due to alleged lack of documentary evidence for cash/credit entries.
What were the issues?
Whether the AO correctly held the assessee's explanation untenable due to a lack of documentary evidence, and whether the CIT(A) erred in upholding this finding without considering that evidence was indeed submitted.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI
Before: SHRI M BALAGANESH & SHRI SUDHIR KUMAR
आयकर अपील�य अ�धकरण, �द�ल� पीठ�, नई �द�ल� INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: B BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA 6834/DEL/2025 (िनधा�रण वष�/Assessment Year: 2011-2012) DEEPTI CHAWLA ITO H. NO. 22, K.C.M. KACHNAR CIVIC CENTRE, DELHI MARG, DLF PHASE I,, GURGAON- Vs. NEW DELHI-110002, DELHI 122002, HARYANA अपीलाथ� Appellant ��थ� Respondent
PAN of Assessee: ADJPC4644E
अपीलाथ� �ारा/Appellant represented by: Shri Chirag Jatwani, CA ��थ� �ारा/Respondent represented by: Shri Rajesh Kumar Dhanesta, Sr. DR
सुनवाई की तारीख / Date of conclusion of hearing: 13-Aug-2026 घोषणा की तारीख / Date of pronouncement: 23-Sept-2026 आदेश / ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [hereinafter referred to as “NFAC”] vide order dated 05.08.2025 pertaining to A.Y. 2011-12 arising out the assessment order dated 31.12.2018 passed u/s.147/148 of the Income-tax Act, 1961, (in short ‘the Act’) by the ITO, 72(4), New Delhi. 2. Ld. AR for the assessee has only pressed the following grounds of appeal:- i) Under the facts and circumstance of the given case, the AO has grossly erred in holding that the reply submitted by the assessee to show cause notice dated 18.12.2018 was not tenable on the grounds that no documentary evidence in respect of cash / credit
ITA 6834/DEL/2025 DEEPTI CHAWLA
entries amounting to Rs. 2,05,71,500/- were submitted, which is grossly injudicious, against the facts of the case and bad in law.
ii) Furthermore the Ld. CIT(A) has grossly erred by noting that in the assessment order dated 31.12.2018 the AO found assessee’s explanation untenable due to insufficient documentary evidence, without considering the fact that the AO found the reply to the show cause notice dated 18.12.2018 untenable on the grounds that no documentary evidence was submitted at all, which in itself is not true because the evidence was duly submitted alongwith the reply.
We have heard the rival contentions and perused the records. Before us, Ld. Counsel for the assessee submitted that Ld. CIT(A) erred in ignoring the fact that AO has grossly erred in holding that the reply submitted by the assessee to show cause notice dated 18.12.2018 was not tenable on the grounds that no documentary evidence in respect of cash / credit entries amounting to Rs. 2,05,71,500/- were submitted, which is grossly injudicious, against the facts of the case and bad in law. It was also submitted by the Ld. AR that Ld. CIT(A) has also erred by noting that in the assessment order dated 31.12.2018 the AO found assessee’s explanation untenable due to insufficient documentary evidence, without considering the fact that the AO found the reply to the show cause notice dated 18.12.2018 untenable on the grounds that no documentary evidence was submitted at all, which in itself is not true because the evidence was duly submitted alongwith the reply. Ld. DR relied upon the order of the CIT(A). In view of the factual matrix, we are of the considered view that the aforesaid aspect/grievance of the ld. Counsel for the assessee needs to be verified/examined at the level of the AO, accordingly, we deem it fit and proper to remit back the issues to the file of the AO for fresh adjudication, after giving adequate opportunity of being heard to the assessee, in accordance with law. Assessee is also directed to substantiate its case before the AO during the proceedings by way of providing all the
ITA 6834/DEL/2025 DEEPTI CHAWLA
evidences/ documents to the AO to enable him to pass a speaking order, in accordance with law. We hold and direct accordingly. 4. In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 23.09.2026.
Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER)
Date: 23.09.2026
SR Bhatnaggar Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI
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