SUNIL KHARBANDA,NEW DELHI vs. ACIT, CIRCLE-50(1), NEW DELHI

PER SATBEER SINGH GODARA, J.M:

These assessee’s twin appeals in ITA Nos. 391 & 392/Del/2024 for assessment years 2017-18 & 2018-19 arise against CIT(A)/NFAC, Delhi’s as many
DINs
&
Order
Nos.
ITBA/NFAC/S/250/2023-24/105895161(1)
&
ITBA/NFAC/S/250/2023-24/1059703154(1), dated 21.12.2023 & 15.01.2024, respectively, in proceedings u/s 144 & 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively.
common order for the sake of convenience & brevity.
Heard both the parties. Case files perused.
2. It emerges during the course of hearing that the assessee’s former appeal
ITA No. 391/Del/2024 involves the Assessing Officer’s Section 144 “Best
Judgment” assessment dated 27.12.2019, inter alia, making various additions of gross profit estimation, business turnover, unexplained cash deposits etc., which stand upheld in principle in the lower appellate discussion. The factual position is hardly any different in the assessee’s latter assessment year’s appeal ITA No.
392/Del/2024 as well wherein unexplained investment of Rs. 3.47 crores and estimate gross profit of Rs. 47,51,145/- ; respectively, form subject matter of addition which stands affirmed in the lower appellate discussion in principle.
3. We have given our thoughtful consideration to the assessee’s and Revenue’s vehement submissions reiterating their respective stands. The assessee made his endeavour to explain the failure in not filing of all quantitative and qualitative details along with other supportive evidences to various communication gaps.
Coming to the latter assessment year 2018-19, he invited our attention to his additional evidence in light of Rule 29 of the I.T. Rules to rebut both the lower authorities findings alleging his failure in proving the source of these unexplained investments as well gross profit estimation, as the case may be. The Revenue could hardly dispute that the assessee’s above additional evidence indeed is very much relevant which could not be altogether rejected at the threshold. We, thus deem it appropriate in these peculiar facts to restore the assessee’s instant twin appeals to the Assessing Officer for his afresh adjudication as per law subject to a rider that it shall be the assessee’s risk and responsibility only to plead and produce the entire evidences within three effective opportunities in consequential proceedings.
Ordered accordingly.

All other issues on legality and merits are kept open at this stage.
4. The assessee’s twin appeals ITA Nos. 391 & 392/Del/2024 are allowed for statistical purposes.

A copy of this common order be placed in the respective case files.
Order pronounced in open court on 15.07.2025. (S. RIFAUR RAHMAN)
JUDICIAL MEMBER

Dated: 15.07.2025. *MP*