IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘B’: NEW DELHI.

BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.521/Del/2025 (Assessment Year: 2015-16)

ITA No.522/Del/2025 (Assessment Year: 2014-15)

ITA No.523/Del/2025 (Assessment Year: 2013-14)

ITA No.524/Del/2025 (Assessment Year: 2016-17)

Income Tax Officer, vs. Ramesh Kumar Bagri, Ward 2 (1), Faridabad. E-6, 204, Sterling Apartment, Charwood Village, Faridabad – 121 005 (Haryana).

(PAN : AAIPB2718E)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Shri Akash Ojha, Advocate REVENUE BY : Ms. Pooja Swaroop, CIT DR Date of Hearing : 11.11.2025 Date of Order : 21.01.2026

O R D E R

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1. The Revenue has filed appeals against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT (A)”, for short] dated 28.08.2025 & 29.08.2025 for the Assessment Years 2013-14 to 2016-17.

2. Since the issues are common and the appeals are connected, hence the same are heard together and being disposed off by this common order. We take up the Revenue’s appeal being ITA No.523/Del/2025 for Assessment Year 2015-16 as lead case to adjudicate the issues under consideration.

3. Brief facts of the case are, assessee is a proprietor of M/s. Ess Pee Industries. No return was filed by the assessee under section 139 of the Income-tax Act, 1961 (for short ‘the Act’) for the A.Y. 2015-16. The case was re-opened u/s 148 as per NMS data extracted from ITBA system, which reflects that the assessee has received high value credits to the tune of Rs.42,56,68,844/- into his bank account maintained with IDBI Bank bearing account no.264101000006354 during the FY 2014-15, which remained unexplained.

4. Since the assessee has not filed his return of income and no scrutiny assessment in his case took place as per information available with the system, the high value credits to the tune of Rs.42,56,68,844/- remained unexplained and accordingly, the case of assessee for A.Y. 2015-16 was re-opened within the meaning of provisions of section 147 of the Act after recording reasons for doing so and obtained necessary administrative approval. Notice u/s 148 of the Act was issued to the assessee on 31.03.2021 and duly served upon the assessee. In response, the assessee has not filed his return of income. Thereafter, notice u/s 142(1) of the Act along with questionnaire was issued on 24.11.2021 asking the assessee to furnish certain details and documents on or before 09.12.2021. On the date fixed for compliance, neither the assessee furnished any document nor was any application for adjournment filed. In order to provide final opportunity to assessee, another notice u/s 142(1) of the Act was issued on 26.12.2021, however, no detail or document has been filed by assessee till completion of the assessment.

5. Accordingly, the AO observed that the assessee has neither filed his return of income nor any documentary evidence, therefore, the source of credit entries in his bank account remained unexplained. During the course of assessment proceeding, the assessee was given ample opportunities vide notices issued u/s 142(1) of the Act to explain the source of credit entries. However, the assessee has decided to keep mum and has not filed any explanation which shows that assessee has accepted the addition and has nothing to say in the matter. Accordingly, AO held that since the assessee has failed to explain the source of credit entries to the tune of Rs.42,56,68,844/-, therefore the same is hereby proposed to be added back to the total income of assessee as unexplained investment u/s

69 of the Act to be taxed u/s 115BBE of the Act.

6. Aggrieved, assessee preferred an appeal before the ld. CIT (A) and filed detailed submissions along with additional evidences. Ld. CIT (A) obtained a remand report and after considering the remand report, he came to the conclusion that the assessee, an entry provider, instead of to