M/S DYNAMIC FINVEST SERVICES PVT. LTD.,NEW DELHI vs. THE DY. COMMISSIONER (DCIT ), CENTRAL CIRCLE-1, CHANDIGARH

1 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.65/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2005-06) & 2. आयकरअपीलसं./ ITA No.66/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2006-07) & 3. आयकरअपीलसं./ ITA No.67/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2007-08) & 4. आयकरअपीलसं./ ITA No.80/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2009-10) & 5. आयकरअपीलसं./ ITA No.68/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2010-11) M/s Dynamic Finvest Services Pvt. Ltd. DCIT Central Circle -1 बनाम/ S – 53, South Anarkali C.R. Building, Sector – 17 Vs. New Delhi – 110051 Chandigarh- 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAACD-3347-E (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Nikhil Goyal (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Sh. Jaishree Sharma (CIT) - Ld. DR सुनवाईकीतारीख/Date of Hearing : 23-06-2026 घोषणाकीतारीख /Date of Pronouncement 11-08-2026 :

2 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for captioned Assessment Years (AYs) arises out of separate orders of Commissioner of Income Tax (Appeals)-31, New Delhi [CIT(A)] all dated 03.11.2025 in the matter of separate assessments as framed by Ld. Assessing Officer [AO] u/s 153A r.w.s. 143(3) of the Act on various dates. 2. The Ld. AR stated that the appeals of the assessee have been dismissed merely on non-prosecution and accordingly Ld. AR sought remand back of the appeals to Ld. CIT(A) for adjudication on merits. The same has been opposed by Ld. CIT-DR. 3. The material facts as captured in impugned order for AY 2005-06 are that an assessment was framed against the assessee on 30.03.2013 making addition of Rs.207.16 Lacs. The said assessment was framed pursuant to search action on assessee group. The first appeal against the same stood dismissed on 13.03.2015. The second appeal before Tribunal was dismissed ex-parte qua the assessee. However, the order was recalled in assessee’s misc. application vide order dated 29.05.2018. Thereafter, the matter was remanded back by Tribunal to Ld. CIT(A) vide order dated 30.11.2018. However, the appeal was again dismissed and the matter was again remanded back by Tribunal to Ld. CIT(A) accepting the arguments of the assessee. 4. In the latest proceedings before Ld. CIT(A), the assessee furnished reply on 16.04.2024 raising various contentions. However,

the notices issued by Ld. CIT(A) on 15.05.2025 & 11.07.2025 calling for further submissions were not complied with by the assessee. A final show-cause notice was issued on 13.10.2025 affording final opportunity to the assessee. The same also remained to be complied with by the assessee. The Ld. CIT(A), in terms of decision of Hon’ble Apex Court in the case of Shri B.N.Bhattacharjee & another (118 ITR 461) held that appeal does not mean mere filing of the appeal but also pursuing it effectively. Since no assistance was forthcoming from the assessee, it was to be presumed that the assessee was not interested in prosecuting the appeal. Finally, the appeal was dismissed. Similar are the facts in all the other years. Aggrieved, the assessee is in further appeals before us in all the years. 5. We have heard the rival submissions and perused the material available on record. It is undisputed fact that the appeals of the assessee before the Ld. CIT(A) have been dismissed for non- prosecution without adjudication of the grounds raised by the assessee on merits. We also note that in the earlier round of proceedings, the Tribunal had restored the matters to the file of the Ld. CIT(A) on more than one occasion, thereby providing an opportunity to the assessee to have its grievances adjudicated in accordance with law. Upon perusal of impugned order, it could be seen that the assessee has furnished submissions, legal as well as on merits, before Ld. CIT(A) on 16.04.2024. However, thereafter, the assessee has not complied with subsequent notices. Thus, the assessee has not been diligent in pursuing the appellate proceedings before the first

appellate authority despite remand back of matter by the Tribunal on two occasions. The conduct of the assessee, therefore, cannot be said to be satisfactory. It is a settled proposition that an appeal is a continuation of the assessment proceedings and ordinarily, the appellate authority should endeavour to dispose of the appeal on merits rather than dismissing the same merely on account of non- prosecution. In the present case, we also take note of the fact that substantial additions are involved and the assessee has already raised various grounds challenging the assessment. In our considered view, the ends of justice would be met if one final opportunity is granted to the assessee to prosecute its appeals before the Ld. CIT(A) and the issues are adjudicated on merits. Accordingly, in the interest of substantial justice and without commenting upon the merits of the additions / disallowances involved, we set aside the impugned orders of the Ld. CIT(A) and restore all the appeals to the file of the Ld. CIT(A) with a direction to adjudicate the same afresh on merits, in accordance with law, after affording reasonable and effective opportunity of hearing to the assessee. The assessee is directed to duly comply with the notices issued by the Ld. CIT(A) and to extend full cooperation in the appellate proceedings. The assessee shall not seek unnecessary adjournments and shall file all supporting documents / submissions relied upon by it within the time allowed by the Ld. CIT(A).Considering the repeated non-compliance on the part of the assessee in the proceedings before the Ld. CIT(A) and also keeping in view that the matter has earlier been restored by the

Tribunal, we deem it appropriate to impose a cost of Rs.10,000/- (Rupees Ten Thousand only) upon the assessee. The assessee shall deposit the said amount within 30 days from the date of receipt of this order to the Poor Patient Relief Fund of PGI Hospital, Chandigarh. The proof of the same would be furnished by the assessee to Ld. CIT(A) who would proceed for de novo adjudication of the appeals on merits as directed hereinabove. The present restoration shall be subject to such compliance. Needless to say, the Ld. CIT(A) shall decide the appeals independently on merits, without being influenced by any observation made in the present order, and in accordance with law. All the grounds raised by the assessee shall be adjudicated by the Ld. CIT(A) by way of a speaking and reasoned order. 6. In the result, all the appeals of the assessee are allowed for statistical purposes subject to the aforesaid cost and directions. Order pronounced on 11th August, 2026 -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated:11-08-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR ITAT CHANDIGARH