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Facts
The assessee, A.K. Enterprises, failed to file its return of income for AY 2019-20. The department received information about cash deposits and foreign remittances, leading to an ex-parte assessment order. The assessee's appeal to the NFAC was partly allowed, deleting some additions but directing assessment in the hands of Shri Rakesh Aggarwal.
Held
The Tribunal noted that the additions made by the AO against the assessee had been deleted by the NFAC. Since the original additions were deleted, the appeal against the deletion order was not maintainable, and therefore liable to be dismissed.
Key Issues
Whether the appeal is maintainable when the additions challenged by the assessee have been deleted by the lower appellate authority.
Sections Cited
147, 144B, 148, 142(1), 139, 234ABC, 270A, 271AAC(1), 271B, 272A(1)(d), 234F, 250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Appellant by Sh. V.K. Sabharwal,Adv Sh.Vinod Sabharwal, Adv. Respondent by Sh.Rajesh Kumar Dhanesta,Sr.DR Date of hearing: 18/02/2026 Date of Pronouncement: 18/03/2026 ORDER PER SUDHIR KUMAR, JM:
This appeal by the assessee is directed against the order of National Faceless Appeal Centre (In short “NFAC”) Delhi vide order dated 26-08-2025 pertaining to A.Y. 2019-20 and arises out of the assessment order dated 02-02-2024 u/s 147r.w.s 144B of the Income Tax Act 1961 (in short “the Act”). 2. The assessee has raised the following grounds in appeal:
1. That the ex-parte assessment order passed u/s 147 r.w.s. 144 & 144B of the Income Tax Act 1961 on 02-02-2024, wherein the illegal and impugned additions have been made of Rs.1,55,13,297/- is perverse to the law and to the facts of the case, therefore becomes non- est, under the law and to the facts of the case.
That because both the authorities failed to appreciate, consider verify from the records, that the partnership firm has already closed –down its business activities w.e.f.31-03-2017 as such bearing no transaction if any in their current account no. 419001010050745 maintained with the Union Bank of India.
That the ex-parte assessment order passed u/s 147 r.w.s. 144 & 144B on 02-02-2024 further becomes non-est, because of the non-receipt /service of any notice u/s 148 along with the other statutory notices claimed to be issued u/s 142(1) of the Income Tax Act 1961 prior to pass the ex-parte assessment order on 02- 02-2024, because of sending the same on wrong e-mail ID as: akenterprisesindia@gmail.com instead of correct e-mail ID at: v22batra@yahoo.com.
4. That the Ld. CIT(A) has correctly appreciated and as such categorized based upon to the information provided documents filed and placed upon records, while passing the appellate order on 26-08-2025 thereby deleting the illegal and impugned additions made of Rs.1,20,78,264/- by the Assessing Officer, after taking into consideration and verification of the facts that the partnership firm has already closed –down its business activities long time back on 31-03-2017 and no funds, if any has found to be credited in current account no. 419001010050745 maintained with the Union Bank Of India, based upon to which the proceedings have been initiated against the partnership firm for the A.Y. 2019-20.
5. That in para -9.2 at page no.9& 10 of the appellate order the Ld. CIT(A) has further categorized that because of the closure of bank account no. 419001010050745 maintained with the Union Bank Of India, by the partnership firm has already been found to be closed w.e.f.26-05-2017 , therefore, no foreign currency if any has found to be purchased from the said bank account by the appellant firm to the tune of Rs.34,35,0333/-, for which the additions were wrongly made by the Assessing Officer, the same was not directed to be deleted on the identical issue in his said order due to some of the typographical error, against which the appellant firm has filed an appeal before this Hon’ble Court.
6. That the ex-parte reassessment order passed by the Assessing Officer on 02-02-2024 and by the Ld. CIT(A) on dated 26-08-2025, both are against the principles of law and natural justice.
That the interest charged u/s 234ABC and initiation of penalty proceedings u/s 270A 271AAC(1). 271B & 272A(1)(d) & Fee u/s 234 F are further illegal as against the law and to the facts of the case.
8. That the appellant firm reverse their rights to raise additional grounds of appeal at any time even during the course of hearing of this instant appeal.
3. The brief facts of the case are that the assessee has not filed the return of income as required u/s 139 of the Act. The department has received the information that the assessee has made cash deposit of Rs.3,02,40,000/-, purchased foreign currency of Rs.34,35,033/- as well as made foreign remittance of Rs.34,35,033/- in the bank of account held with Union Bank of India for A.Y. 2019-20. Notice under section 148 of the Act was issued to the assessee but no compliance was made by the assessee. The Assessing Officer completed the ex-parte assessment after making the addition of Rs.1,55,13,297/-.
Aggrieved the order of the AO the assessee filed the appeal before the Ld. NFAC who vide his order dated 26-08-2025 partly allowed the appeal of assessee.
Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal.
The ld. AR of the assessee has submitted that assessee firm was dissolved on 31-03-2017 as per dissolution deed dated 10- 04-2017. From the 1st April and onward the assessee again become the Proprietorship concern of Sh. Rakesh Kumar Aggarwal. He further submitted that the assessee PAN NO. ABGFA6349B was not existence during the year under consideration. The assessee has not made any transaction during the year under consideration, so no return of income was filed by him. He also submitted that the additions made by AO in the hand of assessee were deleted by the Ld. NFAC but wrongly directed the AO to assess such income in the hands of Shri Rakesh Aggarwal.
7. Ld. DR has relied the order of the AO. He submitted that the Ld. NFAC granted the relief to the assessee by allowing the appeal partly. The appeal filed by the assessee is not maintainable.
We have heard the parties and gone through the material available on record. The main grievance of the assessee is that the Ld. NFAC directed the AO to assess such income in the hands of Shri Rakesh Aggarwal. Sh. Rakesh Aggarwal is not the appellant in this case and the additions made by the AO against the assessee/appellant have been deleted. During the hearing of the appeal, the order under section 250/147 r.w.s. 144 of the Act is filed in which the additions have been deleted by the AO, in the compliance of the Ld. NFAC order. Since, the additions has been deleted by the Ld. NFAC, the appeal of the assessee is not maintainable, Therefore, the appeal of the assessee is liable to be dismissed.