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Facts
The assessee's appeal was dismissed by the NFAC, Delhi, for AY 2017-18. The grounds for dismissal included alleged non-payment of advance tax and initiation of reassessment proceedings without proper approval.
Held
The Tribunal held that the CIT(A) should have decided the appeal on its merits. The Tribunal restored the appeal to the file of the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A) wrongly dismissed the appeal without considering the merits and the factual contention of the assessee regarding tax payment and the validity of reassessment proceedings.
Sections Cited
148, 151, 69, 115BBE, 69A, 56(2)(vii), 270A, 271AAC(1)
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 28/12/2024 by the NFAC, Delhi, [hereinafter ‘the ld. CIT(A)’], pertaining to AY 2017-18. 2. The grievance of the assessee reads as under:- “SECTION - INVALID ORDER
THAT, impugned dated 28/12/2024 was issued on pretext that, advance tax was not paid by appellant for AY 2017 - 18, however there was not outstanding liability on income returned by appellant.
THAT, NFAC has raised no query with regard to impugned non-payment of advance tax and without providing opportunity of hearing has dismissed appeal of appellant. SECTION 151 - INVALID APPROVAL FOR INITIATING REASSESSMENT PROCEEDINGS 3. THAT, AO is erred in law and on facts, in initiating reassessment proceedings vide jurisdictional notice dated 29/07/2022 issued u/s. 148 of the Act, after seeking 2 approval from ld. PCIT instead on appropriate authority in accordance with section 151 of the Act, 1961. 4. SECTION 69 R. W.S 115BBE THAT, AO is erred in law and on facts allegedly making addition on account of unexplained investments on purchase of immovable property u/s. 69 r.w.s. 115BB amounting to Rs. 1,25,641,00/-
SECTION 69 R.W.S. 115BBE THAT, AO is erred in law and on facts allegedly making addition on account of unexplained investments on purchase of bonds/debentures under section 69 r.w.s.115BBE amounting to Rs. Rs.5,87,50,000/-
SECTION 69A R.W.S. 115BBE THAT, AO is erred in law and on facts allegedly making addition on account of unexplained money on cash deposit by old SBN notes under section 69A r.w.s.115BBE amounting to Rs. Rs.9,50,000/-
SECTION 69A R. W.S. 115BBE THAT, AO is erred in law and on facts allegedly making addition on account of current year loans & advance to others under section 69A r.w.s. 115BBE amounting to Rs.6,84,200/-.
SECTION 56(2)(vii) THAT, AO is erred in law and on facts allegedly making addition on account of gift amount treated as income from other sources under section 56(2)(vii) of the I.T. Act amounting Rs.48,33,000/-.
SECTION 270A - 271AAC(1) THAT, AO is erred in law an on facts in initiating penalty proceedings under above mentioned sections.
THAT, the appellant craves, leave to add, alter, amend or vary and/or withdraw any or all of the aforesaid grounds of Appeal or at time of hearing of the above appeal.”
3. At the very outset, the ld. Counsel for the assessee stated that the ld. CIT(A) has dismissed the appeal on incorrect appreciation of facts inasmuch as the assessee had filed return of income and has paid taxes thereon.
4. On such submission, we are of the considered view that the ld. CIT(A) ought to have decided the appeal on merits of the case. We, therefore, deem it fit to restore the appeal to the file of the ld. CIT(A). The ld. CIT(A) is directed to decide the appeal afresh after affording reasonable and adequate opportunity of being heard to the assessee, on merits of the case.
I.T.A. No. 277/Mum/2025 3