DEEPAK COMMUNICATION,AJIT NAGAR vs. ASSESSING OFFICER, DELHI

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ITA 3076/DEL/2025Status: DisposedITAT Delhi27 October 2025AY 2017-2018Bench: SHRI VIKAS AWASTHY (Judicial Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the impugned order was passed ex-parte. Therefore, in the interest of justice, the appeal was restored to the CIT(A) for fresh adjudication after providing the assessee with a reasonable opportunity to make submissions.

What were the facts?

The assessee had deposited cash amounting to Rs. 13,55,000/- during the demonetization period. The Assessing Officer added this amount to the assessee's income and levied penalty under Section 271AAC(1). The CIT(A) confirmed the penalty.

What were the issues?

Whether the penalty order passed ex-parte warrants restoration for fresh adjudication to provide the assessee with a reasonable opportunity of being heard.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 139(1),Section 142(1),Section 144,Section 69A,Section 115BBE,Section 274

AI-generated summary — verify with the full judgment below

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

Hearing: 31/07/2025

ORDER

PER VIKAS AWASTHY, JM:

1.

This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 08.09.2023, for Assessment Year 2017-18.

2.

The solitary issue, in the present appeal by the assessee is against levy of penalty u/s.271AAC(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) amounting to Rs.1,04,674/-. The assesssee had deposited cash amounting to Rs.13,55,000/- during demonetization period i.e. between 09.11.2016 to 30.12.2016 in his bank account maintained with Yes Bank Ltd. Krishna Nagar Delhi, account no. 226190000295. The return of income was filed (AY 2017-18) by the assessee u/s.139(1) of the Act in response to the notice issued u/s.142(1) of the Act. The Assessing Officer (AO) vide assessment order dated 18.12.2019 passed u/s.144 of the Act made addition of the entire amount of Rs.13,55,000/- u/s.69A r.w.s. 115BBE of the Act. Penalty proceedings u/s.271AAC(1) of the Act were also initiated. Notice u/s. 274 r.w.s. 271AAC(1) of the Act dated 17.09.2021 was issued to the assesesee. The AO in ex-parte proceedings levied penalty u/s.271AAC(1) of the Act Rs.1,04,674/- i.e. @10% of the tax payable u/s.115BBE of the Act. The assessee filed appeal against the penalty order dated 16.03.2022. The assessee filed appeal before the CIT(A). The CIT(A) vide impugned order confirmed the penalty order.

3.

I find that the impugned order has been passed in ex-parte proceedings. In the interest of justice this appeal is restored to the CIT(A) for fresh adjudication after affording reasonable opportunity of making submissions to the assessee, in accordance with law.

4.

The assessee upon service of notice by the CIT(A) shall respond to the same, without fail.

5.

It is further brought to the notice of Bench that assessee’s appeal in for AY 2017-18 against ex-parte order of CIT(A) upholding assessment order has already been restored back to the CIT(A) by the Tribunal vide order dated 17.02.2025 for fresh adjudication.

6.

In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Monday the 27th day of October, 2025.

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