2026 (9) TMI 137

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.... of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 147 r.w.s 144 of the Income-tax Act, 1961 (hereafter referred to as 'the Act'). Further details of the orders of the lower authorities are as under: - ITA No. & AY Ld. FAA who passed the appellate order Appeal No. & Date of order of the Ld. FAA AO who passed the assessment order & Date of order 4658/D/26 2016-17 NFAC, Delhi DIN & Order No : ITBA/NFAC/S/250/2025-26/1082674462(1) Dated: 17.11.2025 Del, Ward (32(3) dated 04.03.2024 4659/D/26 2019-20 NFAC, Delhi DIN & Order No : ITBA/NFAC/S/250/2025-26/1082674783(1) Dated: 17.11.2025 NFAC, Dated 29.02.2024 2. The two cases were heard together as they involved common....

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....ara 6 of the order for both the years before us NFAC records that after examination of assessment record, grounds of appeal and 'the evidence before ld. AO; findings are being given. While we have observed that assessment are completed u/s 144 of the Act. NFAC records in both the cases that assessee had not produced any documentary evidences to support its 'claim of business income and that cash deposits were source from his business' and that became basis for sustaining the additions made by ld. AO. Apparently, there is complete non application of mind by ld. First Appellate Authority on the issues. At the same time, we find that assessee had raised legal ground questioning the assumption of jurisdiction and had sought relief qua quashing ....

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....e same AO Ward-4(1) Delhi who has recorded these in correct facts in the reasons. Then it comes that assessee had received Rs. 1,00,00,000/- on 4 occasions through banking channel on 04.02.2016 from Smt. Sunita Agarwal who was one of its directors and shareholders but in an ambiguous manner AO records that the transaction is undertaken in the "bank/in cash". 6. In regard to AY: 2019-20 we find that we find that the ITO Ward 4(1) Delhi had issued a notice dt.17.03.2023 u/s 148A(b), requiring the assessee to show cause as to why a notice u/s 148 should not be issued to it while fixing the compliance date for 25.03.2023. In the table of the ANNEXURE (found attached with the said notice dt.17.03.2023), the learned AO had mentioned the amount....

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....nk account of the assessee, he would not have used the terms 'given' and 'Cash'. 10. Thus there is substance in contention that these are clear-cut case of non-application of mind on the part of the learned AO. The very foundation and soul of the notice u/s 148(b) was faulty and factually incorrect. The learned Pr.CIT-1 Delhi seems to have also not applied its mind and looked into the records available on portal to see if facts of non filer in AY 2016-17 or reasons to scale down income escaping amount of Rs. 6,52,00,000/- to Rs. 2,52,00,000/-, has some foundation. 11. In regard to aforesaid state of affairs, we are of the considered view that opening of reassessment and recording of reasons of such incorrect facts in A....