DARBARI LAL FOUNDATION,DELHI vs. ACIT CIRCLE EXEMPTION 1(1), DELHI

ITA No.3927/Del/2026 Darbari Lal Foundation v ACIT Circle Exemption 1(1)

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”, DELHI

BEFORE SH. M. BALAGANESH, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER

ITA No 3927/DEL/2026 Assessment Year: 2016-17 Darbari Lal Foundation Vs. Assistant Commissioner of G-2 Phase-1 Ashok Vihar Income Central Circle Delhi-110052 Exemption-1(1) Delhi PAN No.AAATD0239N (APPELLANT) (RESPONDENT)

Appellant by Sh. Ankit Kumar, Adv(VC) Respondent by Ms. Harpreet Kaur Hansra, Sr DR

Date of hearing: 21/09/2026 Date of Pronouncement: 23/09/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This is appeal filed by the assessee against the order dated 20-02-2026 of the Commissioner of Income Tax Appeal Addl/ JCIT(A) -5 Mumbai [hereinafter referred to as “Ld.CIT(A)”] arising from the assessment order under section 143(3) of the

ITA No.3927/Del/2026 Darbari Lal Foundation v ACIT Circle Exemption 1(1) Incoe Tax Act (in short “the Act”) dated 26-12-2018 for the A.Y. 2016-17. 2.The brief facts of the case are that the assessee filed its return of income on 14-10-2016 declaring Nil for A.Y. 2016-17. The case of the assessee was selected for scrutiny under CASS and notice under section 143(2) of the Act was issued and duly served upon the assessee. The assessee is society registered under section 12A of the Act. During the assessment proceedings it was found that the assessee had shown advance purchases of land as application of income to Rs.75,00,000/-. The Assessing Officer disallowed the advance for purchase of land of Rs.75,00,000/- and added the amount in the income of the assessee. Aggrieved the order of the Assessing Officer the assessee filed the appeal before the Ld.CIT(A), who dismissed the appeal of the assessee. The Ld. CIT(A) has observed that no communication from the applicant a reminder was sent on 03- 02-2026. The applicant has not made ant compliance to the reminder sent till date. As the appellant had not complied to any of the notices sent the appeal is adjudicated on the basis of material available on record. Being aggrieved the order of the Ld. CIT(A), the assessee is in appeal before the tribunal. 3. We have heard both parties and gone through the material available on record.

ITA No.3927/Del/2026 Darbari Lal Foundation v ACIT Circle Exemption 1(1) 4. In the ground no.5 of appeal, the assessee stated that appeal was dismissed without considering the submission submitted by the assessee. It is evident from the order of the Ld. CIT(A) that the assessee filed the submissions, before the appellate authority but not complied the last notice and the Ld.CIT(A) dismissed the appeal without going the merit of the case. The Ld. CIT(A) should have decided the appeal on merit after considering the submission made by assessee. We have heard the parties and perused the material available on record. 5. Since, the Ld. CIT(A) dismissed the appeal without

considering the submission made by assessee, therefore, the

totality of the facts and circumstances of the case and in the

interest of justice, we deem fit it proper to restore the issue to

the files of the Ld. NFAC with a direction to decide the appeal on

merit to grant one final opportunity to the assessee to

substantiate its claim and decide the issue as per fact and law

and pass a speaking order on merit. The assessee is also

directed to appear before the Ld.CIT(A) and substantiate its case

without seeking any adjournment. The grounds raised by the

assessee are accordingly allowed for statistical purposes.

ITA No.3927/Del/2026 Darbari Lal Foundation v ACIT Circle Exemption 1(1) 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 23.09.2026.

Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Date: 23.09.2026 S.R. BHATNAGGR Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI