VINOD KUMAR MADDHESIYA,GORAKHPUR vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DELHI

PER SUDHANSHU SRIVASTAVA, J.M.: This appeal has been preferred by the Assessee against the order dated 23.02.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2018-19.

2.0 The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. On the basis of information available with the Income Tax Department that the assessee had made cash withdrawals from his various Bank accounts, maintained with State Bank of India, the case of the assessee was reopened under section 147 of the Income Tax Act, 1961 (hereinafter called 'the Act’) after issuing notice to the assessee under section 148 of the Act. However,

ITA No.112/VNS/2024 Page 2 of 7

there was no response from the side of the assessee to the notice issued by the Assessing Officer (AO) under section 148 of the Act. The AO, thereafter, issued statutory notices, requiring the assessee to furnish the details, submissions and explanations relating to cash withdrawals made by the assessee from his Bank accounts. However, there was still no response from the assessee. The AO, subsequently, obtained Bank account statement from State Bank of India, from which it was noticed that the assessee had made cash withdrawals of Rs.1,60,67,503/- from his Bank Account No.36617040415 and Rs.16,15,113/- from his Bank Account No.33116960568, totaling to Rs.1,76,82,616/-. The AO issued show cause notice under section 144 of the Act to the assessee, requiring the assessee to furnish the details of cash withdrawals. Since again there was no response from the side of the assessee, the AO treated the cash withdrawals of Rs.1,76,82,616/- as unexplained money of the assessee and added the same to the total income of the assessee under section 69 of the Act.

2.1 The AO further noticed that the assessee had received Rs.73,440/- as commission/brokerage from one Sanjivani Vikas Foundation. Since the assessee had not provided any supporting evidences in respect of commission receipts, 20% of the same

ITA No.112/VNS/2024 Page 3 of 7

was treated as income of the assessee for the year under consideration, which came to Rs.14,688/-, and added the same to the total income of the assessee.

2.2 The AO completed the assessment under section 147 read with sections 144/144B of the Act, assessing the total income of the assessee at Rs.1,76,97,304/-.

2.3 The AO also invoked the provisions of section 115BBE of the Act, and initiated penalty proceedings under sections 270A, 271AAC and 272A(1)(d) of the Act, separately.

2.4 Aggrieved, the Assessee preferred an appeal before the NFAC, which dismissed the appeal of the assessee as un- admitted for the failure of the assessee to comply with the provisions of section 249(4)(b) of the Act and confirmed the order of the AO.

2.5 Now the assessee has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal:

ITA No.112/VNS/2024 Page 4 of 7

3.0 The Ld. Authorized Representative for the assessee (Ld. A.R.) submitted that there is a delay of 66 days in filing the appeal before the Tribunal. He further submitted that the assessee had filed an application dated Nil for condonation of delay duly supported by Medical Certificate, stating therein that the assessee was not in a condition to file the appeal, as he was suffering from Typhoid and the Doctor attending him advised to

ITA No.112/VNS/2024 Page 5 of 7

take complete bed rest for a month and, therefore, the appeal could not be filed before the Tribunal well in time. The prayer of the Ld. A.R. was that the delay of 66 days caused in filing the appeal was not deliberate, which may please be condoned and the appeal be heard on merits.

3.1 The Ld. Sr. D.R. objected to the delay being condoned.

3.2 In view of the prayer made by the Ld. A.R., we condone the delay in filing of the appeal and admit the appeal for hearing.

4.0 During the course of hearing before us, the Ld. A.R. submitted that the Assessee was a Commission Agent and was engaged in the Business of Authorized Financial Intermediary, popularly Known as “Customer Service Point” or "Grahak Sewa Kendra" from Financial Intermediary, namely ‘Sanjivani Vikas Foundation’ during the year under consideration. The Ld. A.R. further submitted that the income earned by the assessee during the year under consideration was below the taxable limit and, therefore, the assessee had not filed the return of income for the year under consideration. The Ld. A.R. placed before me the copies of Certificate from Sanjivani Vikas Foundation and also Bank Authorization Certificate issued by the State Bank of India, Chauri Chaura, Gorakhpur and prayed that the same may be taken on record and the matter may be restored to the file of the

ITA No.112/VNS/2024 Page 6 of 7

AO where the assessee shall produce these Certificates to prove that all the aforementioned cash withdrawals relate to Sanjivani Vikas Foundation and not to the assessee.

5.0 Per contra, the Ld. Sr. D.R. placed reliance on the orders of the authorities below and submitted that the appeal of the assessee be dismissed.

6.0 We have heard the rival submissions and have also perused the material on record. Looking into the facts of this case, we are of the considered view that the Assessee deserves one more opportunity to present his case and, therefore, in the interest of substantial justice, we restore this file to the Office of the AO with the direction to provide one more opportunity to the Assessee to present his case. We have already taken on record the Certificate from Sanjivani Vikas Foundation and also Bank Authorization Certificate issued by the State Bank of India, Chauri Chaura, Gorakhpur. The Assessee shall produce them before the AO during the course of set aside proceedings. We also caution the Assessee to fully comply with the directions of the AO in the set-aside proceedings when called upon to do so, failing which, the AO would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the Assessee.

ITA No.112/VNS/2024 Page 7 of 7

7.0 In the result, the appeal of the Assessee stands allowed for statistical purposes.

Order pronounced in the open Court on 12/05/2026.

Sd/- Sd/- [NIKHIL CHOUDHARY] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER

DATED:12/05/2026 JJ: