NIRMAL KISHORE JAIN,SAINIK FARMS, NEW DELHI vs. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, INCOME TAX OFFICE, NFAC, DELHI

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ITA 5923/DEL/2025Status: DisposedITAT Delhi30 April 2026AY 2015-168 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the Assessing Officer and CIT(A) failed to duly consider the assessee's submissions and evidence. Therefore, the matter was set aside and restored to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee appealed against the CIT(A)'s order upholding the Assessing Officer's action. The assessee contended that their submissions and documentary evidence regarding a single building were ignored, and the order was passed mechanically, violating natural justice.

What were the issues?

Whether the lower authorities properly considered the assessee's submissions and evidence regarding the claim for relief under Section 54F, and whether the orders were passed in accordance with natural justice.

Which sections of the Income-tax Act were involved?

Section 54F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: YOGESH KUMAR U.S. & SHRI KRINWANT SAHAY

Hearing: 02/02/2026Pronounced: 30/04/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘G’ NEW DELHI)

BEFORE YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER

PHYSICAL HEARING ITA No. 5923/DEL/2025 (A.Y. 2015-16)

Nirmal Kishore Jain, V Addl./Joint/ Dy. /Asstt. W-15/10, Western Avenue, s Commissioner of Income Sainak Farms Tax. Delhi New Delhi 110062 PAN AAAPJ2397K

Appellant Respondent Assessee by ShRatnesh Gupta, Advocate Revenue by Sh Manish Gupta, Sr.DR Date of Hearing 02/02/2026 Date of Pronouncement 30/04/2026

ORDER PER KRINWANT SAHAY, AM : The present appeal is filed by the Assessee against the order

dt. 25.08.2025 of Ld. Commissioner of Income Tax (Appeals),

National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New

Delhi dated 25.08.2025

2.

Grounds of appeal raised by the Assessee are as under:

1.

Ground No. 1 relates to the Ground No. 1 of appeal filed/order received dated 25/08/2025.

2 ITA No. 5923/Del/2025

(Issue of relief u/s 54F).

That order passed by Ld. CIT (Appeals), NFAC, Delhi dated 25/08/2025 is bad in law and has been passed without appreciating the facts and circumstances of the case and alleging wrongly on the assessee that the assessee reiterated the same facts again whereas the fact of the matter is that various facts has been submitted by the assessee to prove that thebuilding was a single building but unfortunately has not been considered at all and impugned order has been passed.

The proviso of section 54F itself has been wrongly applied and has been mistakenly not accepted.

The various facts submitted by the assessee has not been objected, denied, no adverse view pointed out nor commented upon, ie. documentary evidences completely ignored, yet mention in the order that after "careful consideration" but factually it is mentioned only in a mechanical manner and impugned order has been passed without considering various facts given by the assessee, yet order passed against the principal of natural justice.

2.

This Ground No. 2 relates to the Ground No. 2 of appeal filed/order received dated 25/08/2025.

Regarding enhancement of Property Value by Rs. 13,06,500/- (from Rs. 40,00,000/- to Rs. 53,06,500/-):

3 ITA No. 5923/Del/2025

That order passed by Ld. CIT (Appeals), NFAC, Delhi dated 25/08/2025 is bad in law and has been passed without appreciating the facts and circumstances of the case and alleging wrongly on the assessee that the assessee reiterated the same facts again whereas the fact of the matter is that various facts has been submitted by the assessee to prove that the building was a single building but unfortunately has not been considered at all and impugned order has been passed.

The various facts submitted by the assessee has not been objected, denied, no adverse view pointed out nor commented upon, i.e. documentary evidences completely ignored, yet mention in the order that after "careful consideration" but factually it is mentioned only in a mechanical manner and impugned order has been passed without considering various facts given by the assessee, yet order passed against the principal of natural justice.

That the assessee reserves the right to amend, delete, add, substitute, modify or alter any one or more of the grounds of appeal at the time of hearing.

Note: That the assessee has also filed appeal before your honour (ITAT Delhi) against the order of PCIT dated 31/03/2021. (appeal filed vide acknowledgement No. 1634628847 dated 19/10/2021) on the same issue, which may kindly be clubbed for precise hearing purpose and oblige.

4 ITA No. 5923/Del/2025

4.

At the outset, the ld. Counsel for the Assessee

submitted that the main grievance of the Assessee is that

the Ld. CIT(A), without properly considering the

submissions and the material available on record and

adjudicating the issues on merits, dismissed the appeal by

merely upholding the action of the Assessing Officer. It has

further been submitted that the order passed by Ld. CIT

(Appeals), is bad in law wherein it was mentioned that the

assessee reiterated the same facts again whereas the fact

of the matter is that various facts has been submitted by

the assessee to prove that the building was a single

building but unfortunately has not been considered at all

and impugned order has been passed. Furthermore, the

contention of the Assessee is that various facts submitted

by the assessee has not been objected, denied, no adverse

view pointed out nor commented upon, i.e. documentary

evidences completely ignored and the order has been

passed in mechanical manner which is against the

principal of natural justice.Accordingly, the Assessee made

5 ITA No. 5923/Del/2025

a prayer to quash/set aside the impugned order of the Ld.

CIT(A) and to remand the matter to the file of the lower

authorities for fresh adjudication.

5.

Per contra, the Ld. DR relied mostly on the orders of

the authorities below.

6.

We have carefully considered the findings recorded by

the Ld. Assessing Officer in the assessment order as well

as those of the Ld. CIT(A) in the appellate order, and have

also taken into account the submissions advanced by the

Ld. Departmental Representative. It is observed that the

assessment order has been passed by the Assessing Officer

without duly considering the details and documents

furnished by the Assessee during the proceedings before

the lower authorities, as well as the material available on

record and the facts and circumstances of the case. The

Ld. CIT(A), in turn, has upheld the action of the Assessing

Officer without adjudicating the issues on merits or

6 ITA No. 5923/Del/2025

properly appreciating the material available on record,

which is not in accordance with law.

7.

The lower authorities are duty-bound to pass orders

on the basis of material available on record and after due

consideration of the merits of the case, however, the same

has not been done in the present case. In these

circumstances, and in the interest of the principles of

natural justice, we are of the considered view that the

Assessee deserves to be afforded one more effective

opportunity to present its case.

8.

Accordingly, we set aside the impugned orders and

restore the matter to the file of the Assessing Officer for

fresh adjudication de novo on merits, after duly

considering the submissions and evidences that may be

furnished by the Assessee, as well as the material available

on record. Needless to add, the Assessing Officer shall

afford adequate and reasonable opportunity of being heard

7 ITA No. 5923/Del/2025

to the Assessee. The Assessee is also directed to extend full

cooperation in the remand proceedings. All grounds and

contentions available under law are kept open. Ordered

accordingly.

9.

Since we have remanded the matter back to the file of

the AO, therefore, we are not giving any findings on other

grounds of appeal raised by the Assessee. Therefore, the

appeal of the Assessee stands allowed for statistical

purposes.

10.

In the result, appeal of the Assessee is allowed for

statistical purposes.

Order pronounced in the open court on April, 2026

Order pronounced in the open court on 30th April, 2026

Sd/- Sd/- (YOGESH KUMAR U.S.) (KRINWANT SAHAY) ACCOUNTANT MEMBER JUDICIAL MEMBER Rkk/R.N, Sr. PS Copy forwarded to:

8 ITA No. 5923/Del/2025

1.

Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT, NEW DELHI

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