KAPIL,DELHI vs. ITO, WARD 45(1), DELHI, CIVIC CENTRE, MINTO ROAD

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ITA 2871/DEL/2026Status: DisposedITAT Delhi04 August 2026AY 2020-20214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) order was ex parte and dismissed the appeal without considering the merits. Therefore, the order of the CIT(A) was set aside.

What were the facts?

The Assessing Officer initiated reassessment proceedings under Section 147 as the assessee did not file a return for AY 2020-21, believing income had escaped assessment. The assessee claimed to have earned commission below the exemption limit, which was reflected in Form 26AS.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex parte without adjudicating on the merits of the case.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148A,Section 148,Section 143(2),Section 142(1),Section 194J,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI

Before: MS MADHUMITA ROY

For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 14/05/2026Pronounced: 04/08/2026

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE MS MADHUMITA ROY, JUDICIAL MEMBER

ITA No. 2871/Del/2026 (A.Y 2020-21) Kapil Vs. Income Tax Officer, 295, Block A Nihal Vihar, Ward 5(1), Civic Centre, Delhi Minto Road, New Delhi (Appellant) (Respondent) PAN: CRNPK7607R

Assessee by : Sh. Manoj Tanwar, CA Revenue by: Shri Manoj Kumar, Sr. DR

Date of Hearing 14/05/2026 Date of pronouncement 04/08/2026 O R D E R PER MADHUMITA ROY, J. M.: The instant appeal filed by the assessee is directed against the

order dated 14.01.2026 passed by the Ld. Commissioner of Income-

tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter

referred to as the Ld. CIT(A)/NFAC] under Section 250 of the Income

Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the

Assessment Order dated 24.02.2025 passed by the Assessment Unit,

Income-tax Department (hereinafter referred to as ‘the ld. AO’) under

Section 147 r.w.s 144read with section 144B of the Income Tax Act,

1961 (‘Act’ for short) for Assessment Year 2020-21.

2.

The AO in receipt of information reported in the insight portal

of the Department that the assessee had received certain income

and/or entered into certain financial transactions during F.Y. 2019-

2 ITA No. 2871/Del/2026 Kapil Vs. ITO 20 relevant to A.Y. 2020-21 which was more than the income not

chargeable to tax. The assessee had not filed return for A.Y. 2020-

21, therefore, the income had escaped assessment for A.Y. 2020-21.

The Jurisdictional AO passed order under Section 148A(d) and

proceedings under Section 147 were initiated by issuing notice

under Section148 of the Act.

3.

With respect to the statutory notices issued under

Section143(2)/142(1) the assessee’s contended that he is engaged in

the day to day business of refilling/ loading cash into ATMs of

HPSPL on its behalf at the premises located in Nihal Vihar, Nangloi,

Delhi. During F.Y. 2019-20 it earned commission of Rs. 1,09,092/-

through HPSPL on which TDS u/s 194J was deducted and reflected

in Form 26AS. As the gross commission income was below the basic

exemption limit, no return was filed for A.Y. 2020-21.

4.

Rejecting the contention of the assessee the AO completed the

assessment under Section147 r.w.s. 144 r.w.s. 144B of the Act on

24.02.2025 at a total income of Rs. 46,74,933/- by making addition

of Rs. 45,65,842/- on account of unexplained money and Rs.

1,09,091/- on account of variation in respect of income under

Section194J as against the returned income at Nil.

5.

In appeal the Learned CIT(A) by and under the impugned order

dated 24.02.2025 affirmed the action of the AO by dismissing the

3 ITA No. 2871/Del/2026 Kapil Vs. ITO appeal of the assessee. Aggrieved, the assessee is in appeal before

this Tribunal.

6.

Ld. Counsel at the very outset contended that the Ld. CIT(A)

has dismissed the appeal in limine, inter alia, by observing as under:

“7.8 The appellant has not complied to notice issued during appellate proceedings and has brought nothing on record to rebut the finding of the Ld. Assessing Officer. Hence there is no cause to interfere with the findings and result of Inquiry in the assessment order of the Ld. Assessing Officer passed u/s 147 r.w.s. 144 r.w.s. 144B of the I.T. Act, 1961 daed 24.02.2025. 8. In the result, the appeal filed by the appellant is dismissed.”

7.

Learned counsel submitted that the Ld. CIT(A) in his ex parte

order has dismissed the assessee’s appeal in limine without going

into the merits of the case.

8.

Heard Learned counsels of the parties and perused the

materials available on record. Considering the fact that the order

passed by the learned CIT(A) is ex parte without going into the

merits of the case, the same cannot be sustained being not in

consonance with the provisions of Section 250 of the Act. Thus, we

set aside the order of Ld. CIT(A) and restore the mater back to the

file of the Ld. CIT(A) for decision afresh on merits after providing

reasonable opportunity of being heard to the assessee. In case the

4 ITA No. 2871/Del/2026 Kapil Vs. ITO assessee fails to comply with the direction of the Ld. CIT(A) the said

authority would be at liberty to pass such order as deem fit in

accordance with law. Ordered accordingly.

9.

In the result, assessee’s appeal is allowed for statistical

purposes.

Order pronounced in the open court on 04/08/2026.

Sd/- (MADHUMITA ROY) JUDICIAL MEMBER

Dated: 04/08/2026 R. Naheed, Sr PS Copy forwarded to

1.

Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi

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