PANKAJ SONI,DELHI vs. ITO WARD 28(5), DELHI

The preliminary issue to be decided in this appeal is as to whether the learned NFAC was justified in confirming the disallowance of deduction made by the learned AO under section 24(b) of the Act in the sum of Rs 18,18,857 by passing an ex parte order in the facts and circumstances of the instant case. 1

I have heard the rival submissions and perused the materials available on record. The assessee is an individual and had filed his income tax return for the assessment year 2023-24 on 28-07-23 declaring total income of Rs. 17,87,230 which includes salary, income from house property and income from other sources. The assessment was completed under section 143(3) of the Act on 26- 03-2025 wherein the claim of deduction under section 24(b) of the Act in the sum of Rs. 18,18,857 was sought to be disallowed by the learned AO. This issue was contested by the assessee before the learned CITA. The assessee had filed detailed written submissions before the learned CITA. However, the learned CITA without considering the written submissions proceeded to pass an ex parte order dismissing the appeal of the assessee. Hence, in the interest of justice and fairplay, I deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 31st -Aug-2026.