DELHI AUTO AND GENERAL FINANCE PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 7(1), NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH “A’’ : NEW DELHI)

BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 174/Del/2020 Asstt. Year : 2009-10 DELHI AUTO & GENERAL VS. DCIT, CIRCLE-7(1), FINANCE PVT. LTD., NEW DELHI 14-C, SAGAR APARTMENTS 6, TILAK MARG, NEW DELHI – 110 001 (PAN: AACCD5848C) (Appellant) (Respondent) Appellant by : Sh. Shivam Yadav, Adv. & Sh. Utkarsa Kumar Gupta, Adv. Respondent by : Sh. Balkishan Gopal, Sr. DR

Date of Hearing 07.08.2026 Date of Pronouncement 07.08.2026

ORDER PER MAHAVIR SINGH, VP : This appeal of the assessee is arising out of the order of the Ld.

Commissioner of Income Tax (Appeal-15), Delhi in Appeal No. 79/18-19

dated 10.10.2019. Assessment was framed by the DCIT, Cirlce-10(1), New

Delhi for the AY 2009-10 u/s 143(3) of the Income Tax Act, 1961

(hereinafter referred as “the Act”) vide his order dated 30.9.2009.

i) Action of the CIT(A) in confirming the action of the DCIT in making addition of Rs. 9,73,03,920/- arbitrarily on account of recasting of the financial results of the assessee company and against the facts and circumstances of the case.

ii) Action of the CIT(A) in confirming the action of the DCIT in making addition of Rs. 7,66,14,394/- on account of cessation of liability u/s. 41(1) of the Act is unjust, illegal, arbitrary, and against the facts and circumstance of the case.

income on 30.9.2009 declaring loss of Rs. 69,91,280/-. The case was selected

for scrutiny under CASS and assessment was completed u/s. 143(3) of the

Act on 20.12.2011 at assessed income of Rs. 16,25,27,464/-.

CIT(A) who dismissed the appeal of the assessee by confirming the additions

made by the AO. Aggrieved, assessee is in appeal before us.

accont of recasting of the financial results of the assessee is concerned, it was

the contention of the Ld. AR that the repurchase of land/ reversal of sale of

land area measuring 21,816.88 square meter @8500/- at Village Mohiccinpur,

Gautam Budh Nagar, District Kanauni, Pargana Loni (Tehsil Dadri), India

that has been sold over period 1998-2004 has been duly recorded and

corresponding book entry on such sale has been disclosed in the books of

accounts on 1.4.2004 which the lower authorities has ignored all the trading 2 | P a g e

account real time adjustment for which he has filed the reconciliation and

requested to send back the matter to the AO for its examination and

verification in accordance law. Ld. DR relied upon the orders of the

authorities below. In view of the aforesaid factual matrix and in the interest of

larger justice, we deem it fit and proper to remit back the issue in dispute to

the file of the AO for examination and verification of the reconciliation filed

by the Assessee and then decide the issue in dispute afresh, in accordance with

law, after affording adequate opportunity of being heard to the assessee. We

hold and direct accordingly.

on account of cessation of liability u/s.41(1) of the Ac is concerned, it was the

contention of the Ld. AR that the assessee company had received Rs.

7,60,14,394/- from various customers as advance for land which was

outstanding from assessment year 2003-04 onwards against which various

Court cases were pending and which was mainly received from 05 parties and

has been repaid over the years in an out of court settlement and all these

balances have been settled and outstanding balance remains nil. It was the

further contention that the assessee has no business form last many years and

in the absence of staff/employee the old records is not readily available and

the assessee is making all possible efforts to locate the records. Ld. DR relied

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upon the orders of the authorities below. Before us, the assessee has filed

some fresh detail, which in our considered opinion needs to be verified at the

level of the AO and after its verification decide the issue afresh after affording

adequate opportunity of being heard to the assessee. We hold and direct

accordingly.

purposes.

Order pronounced in the Open Court on 07.08.2026.

Sd/- Sd/- (MANISH AGARWAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT

SRBhatnagar Date: 10-08-2026 Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order,

Assistant Registrar, ITAT, Delhi Bench

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