PADAM JAIN, DURG,DURG vs. DCIT, CIRCLE-1(1), BHILAI, BHILAI

ITA 312/RPR/2026Status: HeardITAT Raipur05 August 2026AY 2020-216 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal acknowledged that the Assessing Officer completed the assessment ex-parte due to the assessee's non-response to notices under Section 148 and Section 142(1). It also noted that the Ld. CIT(A)/NFAC passed an ex-parte order sustaining the additions due to the assessee's non-prosecution of the appeal. The assessee's primary contention was that the reassessment proceedings were initiated on wrong facts and that no notice under Section 148 was served, preventing them from filing a proper response. Considering the totality of the facts and in the interest of justice, the Tribunal decided to restore the issue back to the file of the Ld. CIT(A)/NFAC. The assessee was granted one final opportunity to substantiate their case by filing requisite details, with a strict warning against seeking adjournments. The Ld. CIT(A)/NFAC was directed to decide the issue afresh based on facts and law. The grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, an individual, failed to file his return of income for Assessment Year 2020-21. Information regarding significant financial transactions, including purchase and sale of immovable property and substantial cash deposits in bank accounts, was received. Consequently, the Assessing Officer (AO) initiated reassessment proceedings under Section 147 of the Income Tax Act, 1961, issuing a notice under Section 148 on February 27, 2024. The assessee did not respond to this notice or subsequent notices under Section 142(1) issued by the Faceless Assessment Unit. The AO completed the assessment ex-parte under Section 147 read with Section 144, determining the total income at Rs. 13,03,76,449/-. The assessee's appeal before the Ld. CIT(A)/NFAC was also dismissed ex-parte due to non-compliance.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961, are bad in law due to being initiated on 'wrong facts' and contrary to available evidence? The assessee contended that the reassessment was based on incorrect facts and that no valid notice under Section 148 was served, rendering the proceedings without jurisdiction. The assessee argued that if given an opportunity, they could substantiate their case. The revenue relied on the orders of the Assessing Officer and the Ld. CIT(A)/NFAC. 2. Whether the notice under Section 148 dated February 27, 2024, is violative of the provisions of Section 148 of the Income Tax Act, 1961, making the subsequent order invalid? The assessee argued that the notice was not served and that the entire proceedings were not in accordance with the law. The revenue relied on the orders of the Assessing Officer and the Ld. CIT(A)/NFAC.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 147,Section 148,Section 142(1),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: JUSTICE (RETD.) SHRI C. V. BHADANG & SHRI R. K. PANDA

For Appellant: Shri Ravi Agrawal, CA
For Respondent: Shri Rituparna Namdeo, CIT-DR

PER R.K. PANDA, VP:

This appeal filed by the assessee is directed against the ex-parte order dated

10.02.

2026 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2020-21. 2. Facts of the case, in brief, are that the assessee is an individual and has not filed his return of income u/s 139(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Information was obtained that the assessee has made the following transactions during the relevant financial year 2019-20: Nature of transactions | Source Amount Amount Description Purchase of immovable | SUB» REGISTRAR | Purchase of | 6,28, 10,000/- property HEAD QUARTER | immovable property Imputed Information —|

The order continues below.

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