S G JOSHI (HUF),DELHI vs. ITO, WARD 29(1), DELHI

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ITA 1059/DEL/2025Status: DisposedITAT Delhi28 August 2025AY 2014-15Bench: SHRI YOGESH KUMAR U.S. (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the invocation of Section 249(4)(b) was erroneous as a return had been filed by the assessee. The order of the CIT(A) was set aside, and the matter was remanded back to the CIT(A) for a decision on its merit.

What were the facts?

The assessee filed an appeal against the order of the Ld. CIT(A) which dismissed their appeal. The CIT(A) invoked Section 249(4)(b) of the Income Tax Act, 1961, to dismiss the appeal, stating that no return was filed. However, the assessment order itself noted that a return had been filed.

What were the issues?

Whether the Ld. CIT(A) correctly invoked Section 249(4)(b) to dismiss the appeal when the assessee had filed a return of income.

Which sections of the Income-tax Act were involved?

Section 249(4)(b),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI YOGESH KUMAR U.S. & SHRI AVDHESH KUMAR MISHRA

For Appellant: Ms. Rano Jain, Adv
Hearing: 21/08/2025Pronounced: 28/08/2025

Appellant Respondent Assessee by Ms. Rano Jain, Adv Revenue by Sh. Dheeraj Kumar Jain, Sr. DR Date of Hearing 21/08/2025 Date of Pronouncement 28/08/2025 ORDER PER YOGESH KUMAR, U.S. JM:

The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (‘Ld. CIT(A)’/’NFAC’ for short), dated 28/12/2024 pertaining to the Assessment Year 2014-15.

2.

The Ld. Assessee's Representative submitted that the Ld. CIT(A) committed error in invoking the provision of Section 249(4)(b) of the Income Tax Act, 1961 ('Act' for short) and erred in dismissing the Appeal of the Assessee ignoring the fact that the Assessee has duly filed the return of income. Thus, sought for allowing the Appeal of the Assessee.

3.

Per contra, the Ld. Department's Representative relying on the order of the Ld. CIT(A) submitted that the Ld. CIT(A) committed no error in dismissing the Appeal, accordingly, sought for dismissal of the Appeal.

4.

We have heard both the parties and perused the material available on record. An assessment order came to be passed against the Assessee on13/05/2023 u/s 147 of the Act by making an addition of Rs. 2,23,52,140/- on account of unexplained investment. The Assessee filed an Appeal before the Ld. CIT(A), challenging the assessment order dated 13/05/2023, which has been dismissed by invoking provision of Section 249(4)(b) of the Act.

5.

The provision of Section 249(4)(b) of the Act is applicable only when no return has been filed by the Assessee. In the present case, the Ld. A.O. himself in first para of the assessment mentioned that ‘Return declaring an income of Rs. 5,89,590/- under the head “income from other sources”’. Therefore, the invocation of provision of Section 249(4)(b) of the Act in dismissing the Appeal by the Ld. CIT(A) is found to be erroneous. Therefore, the order of the Ld. CIT(A) is hereby set aside and we remand the matter to the file of the Ld. CIT(A) with a direction to decide the first Appeal on its merit. Needless to say, the Assessee shall be provided with opportunity of being heard to the Assessee.

6.

In the result, Appeal of the Assessee is partly allowed for statistical purpose.

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