ITAT Remands Ex-Parte Search Assessments with Opportunity to Represent and Imposes Rs. 5,000 Cost
The Income Tax Appellate Tribunal (ITAT) Delhi remanded ex parte assessment orders to the CIT(A) for fresh hearing, imposed Rs.5,000 cost per appeal, and allowed the assessee’s appeals for statistical purposes.
Ghanshyam Gupta and Anjula Gupta have filed two appeals against the Income Tax Department in the ITAT Delhi, challenging ex parte orders for the assessment years 2012-13 to 2018-19 and 2012-13 to 2017-18, passed by the CIT(A) under Section 153A/143(3) of the Income Tax Act, 1961. Two of the appeals were concerned with a common issue; hence, the tribunal issued a common order for both appeals.
On November 10, 2017, the income tax authorities conducted a search and seizure operation at the premises of the group comprising Shri Rajeshwar Singh Yadav and other group members. During the operation, several incriminating documents/materials were found at the premises of Shri Ghanshyam Gupta and Smt Anjula Gupta, i.e., 46, Old Vijay Nagar Colony, Agra. The tax authorities immediately seized them all. Thereafter, the cases were transferred to the DCIT, Central Circle, Ghaziabad.
The concerned authority issued notices under Sections 153A, 143(2), and 142(1) to the assessee. However, the assessees did not show any compliance with these notices. Also failed at furnishing a series of documents like financials, bank statements, and other documentary evidence in respect of the unsecured loans received by it from corporate and non-corporate parties. The continuous adjournment of cases from time to time was making them time-barred; therefore, the AO completed the assessment with the available documents and made an addition.
When the assessees filed an appeal before the CIT(A). During the proceedings, several notices were served to the assessees; however, none appeared at the hearing. In conclusion, the CIT(A) confirmed the impugned addition. Thereafter, the assessees approached the ITAT Delhi. Even before the tribunal, the assessees sought more time to file documents and paper books, citing a lack of opportunity and other engagements.
The tribunal observed that even before the lower authorities, the assessee did not properly cooperate. Considering the seriousness of the additions, the tribunal additionally imposed a cost of Rs.5,000 in each appeal and gave a time limit of 15 days to deposit the amount in the Prime Minister’s Relief Fund.
Also, the tribunal sent the case back to the CIT(A) for fresh adjudication in order to ensure justice. Also directed the CIT(A) to give the assessee a proper opportunity for a hearing at this time. The appeals were allowed for statistical purposes.
Citation: Ghanshyam Gupta and Anjula Gupta Vs DCIT (ITAT Delhi); IT(SS)As No.5845 to 5851/Del/2025 and IT(SS)As No.5900 to 5905/Del/2025; 18/02/2026; 2012-13 to 2018-19 and 2012-13 to 2017-18
