CHANDER BHAN,HANSI, HISAR vs. ASSESSMENT UNIT, NFAC, DELHI

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ITA 4206/DEL/2026Status: DisposedITAT Delhi01 September 2026AY 2013-143 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order was passed in a mechanical manner without considering the assessee's submissions and documents. Therefore, the assessment order is unsustainable in law and liable to be quashed.

What were the facts?

The Assessing Officer (AO) issued a show cause notice and then an assessment order that was identical to the notice. The assessee had provided detailed submissions and supporting documents, which were not considered by the AO. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether the assessment order is valid when it is identical to the show cause notice and fails to consider the assessee's submissions? Whether the AO mechanically passed the assessment order without proper application of mind?

Which sections of the Income-tax Act were involved?

Section 143(2),Section 147,Section 142(1),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI VIKAS AWASTHY

For Respondent: Shri Manoj Kumar, Sr. DR

PER VIKAS AWASTHY, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 20.02.2026, for Assessment Year 2013-14.

2.

Shri Mukesh Mittal, appearing on behalf of the assessee at the outset submits that this a unique case where the Assessing Officer (AO) has made the assessment at the time of issuing show cause notice itself. The ld. AR referred to show cause notice dated 23.03.2022 at page 4 of the paper book. The ld. AR pointed that the assessment order dated 27.03.2022 is verbatim of show cause notice (supra). There is no whisper of the detailed submissions made by the assessee during assessment proceedings in the assessment order. They were neither recorded nor dealt by the AO. The assessee in response to notice u/s.143(2) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 24.09.2020 had made detailed submissions

ITA 4206/DEL/2026 CHANDER BHAN vide reply dated 09.10.2020. Again, in response to notice u/s.142(1) of the Act dated 14.02.2022 and 16.02.2022, the assessee made detailed submissions on 23.02.2022 and 25.03.2022. The AO without taking cognizance of replies of the assessee completed the assessment reproducing the contents of show cause notice dated 23.03.2022. The assessee along with its reply had furnished copies of bank statements, copy of ledgers to substantiate goods, copies of Form J and Form I, copies of quarterly and annual VAT returns, copy of market committee certificate to substantiate that the proprietorship firm of the assessee M/s. Bhagwan Dass Chander Bhan is a licensed Category II commission agent in 2012-13. The AO has not considered any of the submissions of assessee and made addition of Rs.40,72,710/- under the head Business Income.

Against the assessment order dated 27.03.2022, the assessee filed appeal before the CIT(A) raising legal issues as well as assailing addition on merit. The CIT(A) vide impugned order without appreciating facts of the case dismissed appeal of the assessee.

3.

Per contra, Shri Manoj Kumar, representing the department vehemently supported the impugned order and prayed for dismissing appeal of the assessee.

4.

Both sides heard, orders of the lower authorities examined. The assessee in appeal has raised jurisdictional issue challenging validity of the assessment order as well as addition on merits confirmed by the CIT(A). The assessee in appeal has raised as many as 22 grounds. In one of the grounds, the assessee has challenged reopening of reassessment proceedings u/s.148 of the Act.

5.

The assessment for AY 2013-14 was reopened vide notice u/s.148 of the Act dated 08.05.2020. In response to the said notice, the assessee filed return of income on 08.06.2020 declaring total income of Rs.2,96,298/-. Thereafter, notices u/s.143(2) and 142(1) of the Act was issued to the assessee. A perusal of documents placed on record reveal that the said notices were duly replied by the assessee. Thereafter, the AO issued show cause notice on 23.03.2022. A perusal of show cause notice reveals that it is more in the nature of assessment order making addition of Rs.40,72,710/-. In response to the said show cause notice the assessee furnished reply on 25.03.2022, the AO without taking cognizance of reply of the assessee passed the assessment order on 27.03.2022. The AO in the assessment order has nowhere alleged that no reply was received from the assessee. At the same time, the AO has not taken cognizance of the reply furnished by the assessee. A perusal of the assessment order shows that it is verbatim of show cause notice dated 23.03.2022. This clearly shows that the assessment order has been passed in a mechanical manner with a pre-conceived mindset without examining the documents

ITA 4206/DEL/2026 CHANDER BHAN furnished by the assessee along with the reply. Such an assessment order passed in a mechanical manner is unsustainable in law and is liable to be quashed. I hold and direct, accordingly.

6.

In the result, the assessment order is quashed and appeal of the assessee is allowed.

Order pronounced in the open court on Tuesday the 01st day of September, 2026.

VIKAS AWASTHY JUDICIAL MEMBER Delhi Dated: 01-September-2026

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