What did the Tribunal hold?

The Tribunal set aside the impugned order and remanded the matter back to the Assessing Officer for a fresh assessment. The assessee was directed to present all facts and documents to the AO.

The assessee's appeal arose from an ex parte assessment order passed due to a communication gap with the tax consultant. The assessee also failed to comply with multiple opportunities given at the first appellate stage, resulting in an ex parte order from the CIT(A).

What were the issues?

Whether the ex parte orders passed by the lower authorities were justified and if the assessee should be given another opportunity to present their case.

Jagannath Traders vs ACIT | ITAT Delhi 2026

Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI SANJAY AWASTHI

For Appellant: Shri Manish Khurana, Adv

For Respondent: Shri Jitender Singh, CIT DR

Hearing: 15.07.2026

ITA No.1846/DEL/2026 JAGANNATH TRADERS IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.1846/DEL/2026 Assessment Year: 2017-18 JAGANNATH TRADERS, Vs. ASSISTANT COMMISSIONER OF 2139, Tilak Bazar, Khari Baoli, INCOME TAX, Circle 47(1), Delhi 110006. Drum Shape Building, PAN No. AAKFJ4390A I.P. Estate, New Delhi, Delhi 110002. Appellant Respondent Assessee by Shri Manish Khurana, Adv. Revenue by Shri Jitender Singh, CIT DR Date of hearing: 15.07.2026 Pronouncement on 27.08.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 23.12.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by NFAC.

1.1 Right at the outset, it was pointed out by the Ld. AR that due to a communication gap between the assessee and his tax consultant, the assessment order was passed in an ex parte manner, with several very large additions as discussed on page 17 of the Ld. AO’s order. It was averred that even before the Ld. CIT(A) there was no compliance to as many as six opportunities given at first appellate stage (the Ld. AR took us through page 11 of the impugned order in this regard). Needless to say, the Ld. CIT(A) also passed an ex parte order. It was the prayer that 1

ITA No.1846/DEL/2026 JAGANNATH TRADERS the assessee may be given another chance to present the facts before the authorities below so that the correct income of the assessee could be worked out.

1.2 The Ld. DR had no objection in case the matter was to be remanded back.

We have considered the submissions of Ld. Ar/DR and have gone through the records before us. It is felt that this is a fact based case and due to ex parte orders of authorities below, adverse inferences have been drawn without the benefit of any relevant document or submission from the assessee’s side. Accordingly, we deem it fit to set aside the impugned order and remand this matter back to the file of Ld. AO for fresh assessment. The assessee would do well to present the facts and documents before the Ld. AO so that he does not suffer on account of non-compliance before that authority.

In the result, the appeal is partly allowed for statistical purposes.

Order pronounced in the open court on 27.08.2026

Sd/- Sd/- (ANUBHAV SHARMA) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27.08.2026 *Kavita Arora, Sr. P.S.

ITA No.1846/DEL/2026 JAGANNATH TRADERS

JAGANNATH TRADERS,DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 47(1), DELHI, DELHI

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