ANKIT JAIN,DELHI vs. DCIT CC-28, DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER I.T.A. Nos. 2587 & 2588/Del/2026 (Assessment Years: 2019-20 & 2020-21) Ankit Jain, DCIT, A-78, Vivek Vihar, CC-28, Phase-2, New Delhi-110095 v. E-2, Jhandewalan Extension, New Delhi-110055 [PAN: AQLPJ2361G] (Appellant) (Respondent) Assessee by Ms.Monika Agarwal, Adv. Department by Sh.Umesh Chandra BhartiCIT-DR Date of Hearing 20.07.2026 Date of Pronouncement 21.07.2026 ORDER PER RAMIT KOCHAR, AM:

These two appeals have arisen from separate appellate orders both dated 18.02.2026 passed by the learned Commissioner of Income Tax (Appeals)-29, New Delhi [CIT(A), in short] u/s 250 of the Income-tax Act, 1961 for assessment years:2019- 20 and 2020-21 (DIN No. ITBA/APL/M/ 250/2025-26/1086199047 for assessment year 2019-20 , and secondly DIN No. ITBA/APL/M/250/2025-26/1086199579(1) for assessment year 2020-21). 2. First we shall take up appeal of the assessee for assessment year 2019-20. Brief facts of the case are that the assessee has filed original return of income u/s 139 (1) for assessment year 2019-20 , on 24.09.2029 declaring income of Rs. 4,57,190/-. Search & seizure operation u/s 132 of the 1961 Act was carried out by the Revenue on 17.03.2021 on ‘Rubberwala Group’ and others. Notice u/s 153C of the Act dated 15th November,

2 ITA Nos. 2587 & 2588/Del/2026 Ankit Jain 2022 was issued by the AO to the assessee. The assessee filed return of income for impugned assessment year in pursuance to notice issued by the AO u/s 153C, on 30.11.2022, declaring income of Rs. 4,57,190/-. Further , notices were issued by the AO to the assessee u/s 143(2) and 142(1) of the 1961 Act during the course of assessment proceedings. The assessee participated in the assessment proceedings. After detailed proceedings carried out by the AO as are recorded in assessment order dated 28.03.2024 passed by the AO u/s 153C of the 1961 Act, the AO made an addition of Rs. 6,50,000/- u/s 69 of the 1961 Act in the hands of the assessee for the impugned assessment year 2019-20. 3. Aggrieved, the assessee filed first appeal with ld. CIT(A), who dismissed the appeal of the assessee mainly on the ground of non-prosecution of its appeal by the assessee. During the course of appellate proceedings carried out by ld. CIT(A), three notices were issued by ld. CIT(A) to the assessee, but there was no compliance by the assessee. The ld. CIT(A) upheld the additions as were made by the AO and dismissed the appeal filed by the assessee by holding that the assessee has not filed any further evidences/submissions during appellate proceedings to dislodge the findings of the AO, and also the appeal stood dismissed by ld CIT(A) owing to non-prosecution of the appeal filed by the assessee with ld. CIT(A). Thus, in nut-shell , the appeal filed by the assessee stood dismissed by ld. CIT(A). 4. Aggrieved, the assessee has now filed an second appeal with the Tribunal. The ld. Counsel of the assessee at the outset submitted that the ld. CIT(A) has dismissed the appeal of the assessee ex-parte without deciding the issue arising in the appeal filed by the assessee on merits , and it was prayed that the matter may be restored back to the file of ld. CIT(A) for denovo adjudication of appeal of the assessee. It was submitted by the ld. counsel of the assessee that the asessee will duly co-operate and file all necessary details with ld. CIT(A) to support its contentions. 4.2. The ld. CIT-DR submitted that the assessee has not complied with the three notices issued by ld. CIT(A) , and it was submitted that the ld. CIT(A) has rightly

3 ITA Nos. 2587 & 2588/Del/2026 Ankit Jain dismissed the appeal of the assessee. The ld. CIT-DR relied upon the order of the AO as well as ld. CIT(A). It was prayed that the appellate order passed by ld. CIT(A) be confirmed/upheld. 5. We have considered rival contentions and perused the material on record. Brief facts of the case as well as contention of both the parties for recorded in the preceding paras of this order , and are not repeated again. We have observed that the ld. CIT(A) has dismissed the appeal of the assessee ex-parte mainly on the ground of non-prosecution of the appeal by the assessee, and that the assessee has not filed any submissions/evidences during appellate proceedings before ld. CIT(A) to dislodge the findings of the AO. The ld. CIT(A) issued three notices to the assesse but the same remained un-complied with by the assessee. We have observed that the ld. CIT(A) has not decided the issues arising in the appeal on merits. We have also observed that the ld. CIT(A) did not make any inquiry as is contemplated u/s 250(4) of the 1961 Act (Now Section 359(3)(b) of the Income-tax Act, 2025), nor the assessment records were called by the ld. CIT(A), before dismissing the appeal of the assessee. The appellate order passed by ld. CIT(A) is a non speaking order passed ex-parte in limine without deciding the issue arising in the appeal on merits. The ld. CIT(A) is required and obligated to pass appellate order in compliance with the provisions of section 250(6) of the 1961 Act (Now Section 359(4) of the Income-tax Act, 2025), as ld. CIT(A) is required to pass reasoned and speaking order on merits in accordance with law. Reference is drawn to provisions of Section 250(6) of the 1961 Act (Now Section 359(4) of the Income-tax Act, 2025), wherein ld. CIT(A) has to state point for determination, his decision and reasons thereof. The ld. CIT(A) even did not made any enquiry, and not even assessment records were called for by ld. CIT(A). The appellate order passed by ld. CIT(A) is subject to further appeal with ITAT u/s 253 of the 1961 Act((Now Section 362 of the Income-tax Act, 2025). The appellate order passed by ITAT is subject to further appeal before Hon’ble High Court u/s 260A of the 1961 Act (Now Section 365 of the Income-tax Act, 2025). The judgment and order passed by Hon’ble High Court is also subject to challenge before Hon’ble Supreme Court. Thus, the

4 ITA Nos. 2587 & 2588/Del/2026 Ankit Jain appellate order passed by ld. CIT(A) is not a final order, as it is subject to challenge before higher appellate authority. Thus, Reasons which weighed in the minds of the adjudicating authority while adjudicating appeal on merits of the issues are cardinal as the higher appellate authority can then adjudicate appeal on the issues arising in appeal before them, based on decision and reasoning of ld. CIT(A) in deciding the issues. If the ld. CIT(A) simply dismiss the appeal merely because the assessee did not comply with the notices issued by ld. CIT(A) in limine without adjudicating issues arising in the appeal on merits , such order is not sustainable in the eyes of law keeping in view provisions of Section 250(6) of the 1961 Act (Now Section 359(4) of the Income-tax Act, 2025) , and also higher appellate authorities will be deprived to see what weighed in the mind of the ld. CIT(A) while adjudicating appeal as it will be an order passed without reasoning on the issues on merits. The appellate order of the CIT(A) is clearly in violation of section 250(6) of the 1961 Act (Now Section 359(4) of the Income-tax Act, 2025), and liable to be set aside. Merely stating that no interference is called for in the assessment order passed by AO owing to non submission of evidence/submissions during appellate proceedings is not sufficient . The ld. CIT(A) is not toothless as his powers are co-terminus with the powers of the AO, which even includes power of enhancement. It is equally true that the assessee also did not complied with the notices issued by ld. CIT(A) and did not file the requisite details/documents to support his contentions. Thus, the assessee is equally responsible for its woes as the assessee did not comply with the notices issued by the AO as well ld. CIT(A). The ld. Counsel for the assessee has made statement before the Bench that if one more opportunity is provided, the assessee will come forward and submit all the details. Keeping in view the entire factual matrix as culled out above in the preceding para’s of this order, it will be fair to both the parties as well in the interest of justice that one more opportunity be provided to the assessee, and that the appellate order of ld. CIT(Appeals) be set aside and the matter be remanded back to the file of ld. CIT(Appeals) for fresh adjudication after giving proper opportunity of being heard to both the parties w.r.t. the issues arising in the appeal .The assessee is

5 ITA Nos. 2587 & 2588/Del/2026 Ankit Jain directed to comply with the notice issued by ld. CIT(Appeals) during the appellate proceedings in set aside remand proceedings, otherwise ld. CIT(A) shall be free to decide the appeal ex-parte on merits in accordance with law, after complying with provisions of Section 250(6) of the 1961 Act(Now Section 359(4) of the Income-tax Act, 2025). We clarify that we have not commented on merits of the issues. Thus, the appellate order passed by ld. CIT(A) is set aside and matter is restored back to the file of ld. CIT(A) for fresh adjudication. The appeal of the assessee is allowed for statistical purposes. We order accordingly. Needless to say that the ld. CIT(A) shall give proper and adequate opportunity of hearing to the assessee in accordance with the principles of natural justice and pass an order on merits in accordance with law as provided u/s 250(6) of the 1961 Act(Now Section 359(4) of the Income-tax Act, 2025). The appeal of the assessee is allowed for statistical purposes. 6. In the result appeal filed by assessee for assessment year 2019-20 is allowed for statistical purposes. Appeal No 2588/Del/2026 for Assessment Year 2020-21 7. Since facts in assessment year 2020-21 are similar to the facts in assessment year 2019-20 , our decisions in ITA No.2587/Del/2026 for assessment year 2019-20 as above, shall apply mutatis mutandis to the appeal filed by the assessee in ITA No. 2588/Del/2026 for assessment year 2020-21.

Orders are pronounced in the Open Court on 21.07.2026

Sd/- Sd/- (RAJ KUMAR CHAUHAN) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 21.07.2026 *GP/Sr.PS*

6 ITA Nos. 2587 & 2588/Del/2026 Ankit Jain Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(E) 4. CIT 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI