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Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Date of hearing: 21/08/2025 Date of Pronouncement: 21/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-24 New Delhi [hereinafter referred to as “CIT(A)”] vide order dated 03.01.2025 pertaining to A.Y. 2022-23 arising out the assessment order dated 23.03.2024 u/s.143(3) of the Income-tax Act, 1961, (in short ‘the Act’).
The assessee has raised the following grounds in appeal:-
1. Because the action for intimation contribution and conclusion of assessment proceedings u/s 143(3) at an assessed income of Rs. 1,65,01,524/- is being challenged on facts and law.
2. Because the action of CIT(A)-2, New Delhi is being challenged on facts and law for not providing reasonable opportunity of being heard. The assessment order being passed is in violation of the principle of natural justice and without giving adequate time and opportunity to the appellant to the appellant to present the case.
3. Because the action is being challenged on facts and law for making disallowance u/s 68 amounting Rs. 1,65,01,524/- whereas per assessee company came under CIRP from 16-06-2023 and all documents are available with the IRP.
4. Because the action is under challenge on facts and law for an addition of Rs.1,65,01,524/- by invoking the provisions of section 68 as unexplained cash credit. Even alternatively the quantum of addition is disputed.
5. Because the action is being challenged on facts and law for making addition of Rs.1,65,01,524/- u/s 68 whereas per assessee. Ld. CIT(A) should have issued notice directly to the IRP to get the documents from IRP.
6. For, any consequential relief and /or legal claim arising out of this appeal and for ant addition deletion amendment and modification in the grounds of appeal before the disposal of the same in the interest of substantial justice to the assessee.
3. The brief facts of the case are that the assessee filed its return of income u/s 139(1) of the Act on 20-12-2022 declaring total loss of Rs. 19,28,754/-The company is engaged in the business of real estate activities. The case of the assessee was selected for complete scrutiny through Computer Assisted Scrutiny Selection. Accordingly, notice u/s 143(2) and u/s 142(1) of the Act, were issued with questionnaire. The assessee filed their submission but not reply the show cause notice. The Assessing officer completed the assessment after making the addition u/s 68 of the Act.
4. Aggrieved by the order of the AO, the assessee filed the appeal before the Ld. CIT(A), the Ld. CIT(A) has dismissed the appeal of the assessee by observing as under :
“During the course of the appellate proceedings, the appellant did not provide any argument or documentary evidence in support of its ground of appeal. In the absence of any argument/evidence from the appellant during the course of appellate proceedings, there is no justification to interfere with the order of the Assessing Officer. Thus, in my considered opinion the Assessing Officer has rightly made addition of Rs. 1,65,01,524/- on account of unexplained cash credit u/s 68 read with Section 115BBE of the I.T. Act, 1961 and I do not find any reason to interfere with the order of the Assessing Officer. Accordingly, the plea of the appellant is rejected and addition made by the Assessing Officer is hereby confirmed. Accordingly, Ground N0s 1 to 7 of appeal are dismissed.”
The Ld. AR of the assessee submitted that the exparte order was passed by the Ld. CIT(A). Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the Ld. CIT(A).
We have heard the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. CIT(A), the assessee did not appear before the authority, for which the Ld.CIT(A) decide the appeal without the evidence of the assessee.
Since in the instant case the Ld. CIT(A) decided the appeal without any argument/evidence of the assessee. The Ld. CIT(A), has dismissed the appeal in non-compliance while the appeal should be decided on merit as per law. Therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(A) and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 21.08.2025.