Tript Singh vs ACIT

PER SUDHIR KUMAR, JM:

These appeals by assessee are preferred against the respective orders of the Ld. CIT(A)/ NFAC, Delhi arising out of the separate assessment orders dated 14.3.2023 passed u/s. 147/144B of the Act and dated 31.3.2023 passed u/s. 153C/144 of the Act of the Assessing Officer for the same Assessment Year viz. AY 2018-19. For the sake of convenience, we are dealing with the facts of ITA No. 4541/Del/2025.

Brief facts of the case are that in this case information has been received under the category High Risk CRIU/VRU Information. As per information, a search and seizure operation action u/s. 132 of the Income Tax Act, 1961 was carried out in the cases of M/s HS Impex Group and others Group cases on 7.12.2018. The case of M/s Dengen Products India LLP was also covered under section 132 of the Act. The search action was performed at the office address i.e. 4/3, WEA Saraswati Marg, near Apra Hotel Delux, Karol Bagh, New Delhi. Prateek Chitkara is the partner in Dengen Products India LLP. On examination of seized material, AO found that details of cash based loan committee are entered in thse diaries. These committees are run by Shri Prateek Chitkara and Shri Harpreet Singh Talwar. A total of 37 participants / contributions have been identified who have made contributions or have received funds. The receipt and payment reflecting in the diaries are in the nature of cash receipt and cash payment. On perusal of seized material it is found that Sh Tript Singh was a participant of these committees. The assessee’s contribution during the year, as per receipts in the diaries is Rs. 7,17,300/-. AO noted that the assessee made cash based investment in committees run by M/s Dengen Products India LLP, but assessee failed to submit any satisfactory documentation in this respect. In view of the facts, the total amount of investment amounting to Rs. 7,17,300/- was treated as unexplained money in the hands of the assessee as per provisions of section 69 of the Act. Accordingly, an amount of Rs. 7,17,300/- was added to the income of the assessee as income from undisclosed sources u/s. 69 of the Act r.w.s. 115BBE of the Act by the AO. AO further noted that as per the record with the department, the assessee has made the following financial transaction viz. SFT Foreign Currency sale from American Express Banking Corp. amounting to Rs. 35,27,196/-. Due to non-compliance on the part of the assessee, the amount of Rs. 35,27,196/- was considered by the AO as the income earned by the assessee and not disclosed and was added to the income of the assessee. Further, the AO noted that as per the record available with the department, the assessee had also made the financial transaction viz. SFT Credit Card with Citibank NA amounting to Rs. 2,00,67,920/-. AO asked the assessee to explain the same vide notice dated 21.2.2023, but assessee neither furnished any reply nor any documents before AO, hence, the same was added to the income of the assessee under the unexplained expenditure in the hands of the assessee as per provisions of section 69C of the Act. Accordingly, an amount of Rs. 2,00,67,920/- was added to the income of the assessee as income from undisclosed sources u/s. 69C of the Act r.w.s. 115BBE of the Act. The AO assessed the income at Rs. 2,43,12,416/- vide order dated 14.3.2023. Against the above, assessee appealed before the Ld. CIT(A), who vide order dated 9.12.2024 has dismissed the appeal of the assessee by observing that during the course of appellate proceedings, the assessee did not provide any argument or documentary evidence in support of its grounds of appeal. Thus, in the absence of any argument / evidence from the assessee during the course of appellate proceedings, there is no justification to interfere with the order of the AO. Hence, he affirmed the action of the AO. Aggrieved, assessee in appeal before us.

Ld. AR for the assessee submitted that Ld. CIT(A) has erred in dismissing the appeal without providing adequate opportunity to the assessee and without looking into the facts as presented in the appeal.

On the other hand, Ld. DR submitted that due to non-compliance of the assessee, the appeal of the assessee was rightly dismissed by the Ld.. CIT(A).

We have heard the rival contentions and perused the records. We find that the appeal of the assessee was dismissed by the Ld. CIT(A) in the absence of any argument / evidence from the assessee during the course of appellate proceedings and the assessee’s contention before us, is that no adequate opportunity was provided to the assessee. In view of the aforesaid factual matrix and in the interest of justice, we deem it fit and proper to remit back the issues to the file of the CIT(A) for its fresh adjudication, after giving adequate opportunity of being heard to the assessee. The assessee through his Ld. AR is directed to file all the evidences before the Ld. CIT(A) to canvass his case properly and fully cooperate with the Ld. CIT(A) during the proceedings.

In the result, the appeal no. 4541/Del/2025 (AY 2018-19) is allowed for statistical purposes.

As regards, ITA No. 4552/Del/2025 (AY 2018-19) is concerned, we note that pursuant to search action AO of the searched person had recorded his satisfaction u/s. 153C of the Act and sent the same to the then jurisdictional assessing officer. The then jurisdictional AO recorded his satisfaction and issued the notice u/s. 153C of the Act dated 21.3.2023 requiring to furnish the ITR within 3 days, however, assessee did not file the same, thus, the AO accepted the last assessed income and assessed the same at Rs. 2,43,12,416/- and charged tax accordingly. In appeal Ld. CIT(A), has observed that as in the assessment order, the AO has not made any addition and return income was accepted by the AO himself, the appeal filed becomes infructuous and accordingly dismissed. Aggrieved, assessee is in appeal before us.

We have heard the rival contentions and perused the records. Since we have remitted back the issues in dispute to the file of the Ld. CIT(A) for fresh adjudication, as aforesaid, in ITA No. 4541/Del/2025, consequently, the issues involved in ITA No. 4542/Del/2025 also stands remitted back to the Ld. CIT(A) for its fresh adjudication, after giving adequate opportunity of being heard to the assessee. The assessee through his Ld. AR is directed to file all the evidences before the Ld. CIT(A) to canvass his case properly and fully cooperate with the Ld. CIT(A) during the proceedings.

In the result both the appeals of the assessee are allowed for statistical purposes.