KRISHNA DEVI SEHRAWAT,DELHI vs. ITO WARD-43(6), DELHI

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 26-02-2025 pertaining to A.Y.
2017-18 arising out the assessment order dated 27-5-2023 u/s.147
r.w.s. 144 r.w.s. 144B of the Income-tax Act, 1961, (in short ‘the Act’).
2. The assessee has raised the following ground in appeal :-

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i)
On the facts and circumstances of the case and in law, the notice u/s 148 issued in this case is bad in law, illegal, without juri iction and barred by limitation and, therefore, the said notice u/s. 148 alongwith assessment order passed on the foundation of such notice are liable to be quashed and CIT(A) erred in not holding so.
ii)
On the facts and circumstances of the case and in law, the reassessment proceedings initiated are contrary to the provisions of law including the specific provisions of section 147
to section 151A of the Income Tax Act, 1961 and therefore, the reassessment proceeding initiated alognwith the assessment order passed are liable to be quashed and CIT(A) erred in not holding so.
iii) On the facts and circumstances of the case and in law, the assessment order passed by the AO is bad in law, without juri iction and barred by limitation and CIT(A) erred in not holding so.
iv) On the facts and circumstances of the ace and in law, the CIT(A), AO erred in making addition of Rs. 52,50,000/- on the account of alleged unaccounted money u/s. 69A of the Act, and, therefore, the addition made by the AO is liable to be deleted.
v)
On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not adjudicating the appeal on merits and setting aside the case to the file of the AO in terms 251(1)(a) of the Act.

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3. The brief facts of the case are that the assessee filed the return of income for the instant assessment year declaring Rs.
7,40,320/- as total income, computed as per provisions of the Income Tax Act, 1961. Show cause notice u/s. 148A(b) was issued on 23.5.2022 and accordingly order passed on 23.5.2022. Notice u/s. 148 was issued on 30.7.2022 and applicant filed reply on 25.8.2022. Thereafter notice u./s.
143(2) was issued on 23.1.2023 and further notice u/s 142(1) of the Act was issued to the assessee on 17.2.2023 and on 19.4.2023, show cause notice for proceedings u/s. 144 was issued on 19.4.2023 . In response, assessee replied. Again show cause notice u/s. 144 of the Act was issued on 11.5.2023
and its reply was submitted by the Assessee on 16.5.2023. Thereafter, AO passed the order u/s. 147/144B by making addition u/s. 69A of Rs. 52,50,000/-.
4. Aggrieved the order of the AO the assessee preferred the appeal before the Ld. NFAC who vide its order dated
26-02-2025 has set aside the matter to the file of the AO for fresh assessment.
5. We have heard the Ld. DR and perused the material available on record. We find that Ld. CIT(A) has set aside the appeal to the file of the AO for fresh assessment by holding as under:-
“5. I have gone through the grounds of appeal, statement of facts, assessment order and the submissions of the 4
appellant. The AO, after providing reasonable opportunity treated the unsecured loan to the tune of Rs. 52,50,000/- as deemed income of the assessee for the FY 2016-17 relevant to the AY 2017-18 and completed the assessment proceedings.

The assessee did not provide any documentary evidence or explanation during the assessment proceedings. However, the appellant has now submitted an explanation and supporting documents during the appellate proceedings, which were not available to the AO earlier.

Order pronounced in the open court on 22.09.2025. ( MANISH AGARWAL)
(JUDICIAL MEMBER)

Date: 03.10.2025

SR Bhatnaggar