Loading judgment…
Facts
The assessee, engaged in trading terracotta pots and livestock, had his case reopened under Section 147 of the Income Tax Act due to substantial cash deposits and withdrawals. The Assessing Officer completed the assessment ex-parte under Section 144 r.w.s. 147 due to non-compliance, estimating profit at 8% and making an addition of Rs.19,95,932/-.
Held
The Tribunal held that the assessee failed to comply with notices during both assessment and appellate proceedings. However, considering the facts and in the interest of justice, the matter was restored to the Assessing Officer for a de novo assessment.
Key Issues
Whether the ex-parte assessment order and the dismissal of appeal by the CIT(A) were justified due to the assessee's non-compliance, and if the matter should be restored for a fresh assessment.
Sections Cited
147, 144, 145(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2018-19) Abdul Hakim C/o Adv. Arpit Agrawal, Gali No.2, Lalitraj Enclave, Murari Lal Ka Pench, Khurja, Uttar Pradesh 203131 ...... अपीलाथ�/Appellant PAN: ABGPH-1586-F बनाम Vs. Income Tax Officer, Ward -2(3)(1), Aayakar Bhawan, Bulandshahr, ..... �ितवादी/Respondent Uttar Pradesh 203001 अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Ms. Sudha Gupta, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 29/07/2025 घोषणा क� ितिथ/ Date of pronouncement : : 24/10/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 05.03.2025, for Assessment Year 2018-19.
The brief facts of the case are that the assessee is an individual engaged in trading of terracotta pots and livestock (buffaloes). The case was reopened u/s.147 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) based on information regarding substantial cash deposits and withdrawals in his bank accounts. Despite issuance of several statutory notices, the Assessing Officer (AO) observed non-compliance and completed the assessment u/s.144 r.w.s. 147 of (A.Y.2018-19) the Act. While completing assessment, the Assessing Officer rejected assessee’s books of account u/s.145(3) of the Act and estimated profit at 8% of the turnover of Rs.2,49,49,145/-. Thus, the AO determined total income of the assessee at Rs.19,95,932/-. Against the assessment order dated 26.02.2024, the assessee filed appeal before the CIT(A). The CIT(A) vide order dated 05.03.2025 (supra), dismissed appeal of the assessee ex-parte on the ground of non-compliance of notices issued to the assessee.
Ms. Sudha Gupta, representing the department, supported the orders of the lower authorities and submitted that the assessee was non-compliant during the assessment, as well as, in appellate proceedings, hence, the CIT(A) rightly dismissed appeal of the assessee.
Submissions made by ld. DR heard and orders of authorities below examined. The assessee during assessment proceedings filed submissions in part. In absence of detailed reply by the assessee, the AO invoked provisions of section 144 of the Act and completed the assessment making addition of Rs.19,95,932/- by estimating GP at 8%. In Fist Appellate proceedings as well the assessee failed to respond to notices dated 07.11.2024, 12.11.2024 and 10.12.2024. In the absence of any contrary material the CIT(A) upheld the assessment order. Considering entire facts of the case and in the interest of justice, I deem it appropriate to restore the matter back to AO for de novo assessment.
The AO shall serve notice to the assessee on the residential address available in the assessment order. The assessee shall respond to the notice served, without fail.
(A.Y.2018-19) 7. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Friday the 24th day of October, 2025.