ITAT Delhi condones 161-day delay, remands credit card and share transaction additions for fresh assessment

The Delhi Bench of the Income Tax Appellate Tribunal has condoned a 161-day delay and remanded the case of Surinder Kumar Malhotra (Assessment Year 2018–19) to the Assessing Officer for de novo assessment, granting the assessee another opportunity to substantiate his claims.

Background

The assessee had not filed a return for AY 2018–19. Based on information available on the Department’s Insight portal reflecting transactions aggregating ₹1.55 crore, the Assessing Officer issued a notice under Section 148. Owing to non-compliance, the assessment was completed ex parte under Sections 147 read with 144 and 144B, determining income at ₹1.55 crore. The NFAC subsequently dismissed the assessee’s appeal ex parte on account of persistent non-response.

Tribunal’s directions

Before the Tribunal, the assessee contended that all transactions—credit card payments across multiple banks and sale of listed equity shares—were routed through banking channels and were verifiable through documentary evidence, but could not be produced earlier due to lack of awareness. The Revenue did not oppose a remand.

Considering the circumstances, the Tribunal set aside the NFAC order and restored the matter to the Assessing Officer for fresh adjudication after granting reasonable opportunity. The assessee was directed to remain vigilant and comply fully during the reassessment.

The appeal was allowed for statistical purposes.