NEWAGE CAPITAL SERVICES PRIVATE LIMITED,NEW DELHI vs. INCOME TAX OFFICER, NEW DELHI

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ITA 5682/DEL/2025Status: DisposedITAT Delhi15 May 2026AY 2012-134 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) failed to adjudicate the additional legal ground raised by the assessee. Therefore, the matter was remitted back to the CIT(A) for re-adjudication of this ground.

What were the facts?

The assessee appealed an order confirming an addition of Rs. 11,00,00,000 under Section 68. The assessee also raised an additional ground challenging the validity of the notice under Section 148, which was not adjudicated by the CIT(A).

What were the issues?

Whether the CIT(A) erred in not adjudicating the additional ground challenging the validity of the notice under Section 148. The validity of the addition made under Section 68 was also an issue, but the primary focus of the remand was the procedural lapse.

Which sections of the Income-tax Act were involved?

Section 68,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘F’: NEW DELHI

Before: SHRI RAJ KUMAR CHAUHAN

For Appellant: Shri M.P. Rastogi, Adv, Shri Shivam Malik, Adv
For Respondent: Shri Mukesh Kumar Jha, CIT-DR
Hearing: 20.04.2026Pronounced: 15.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘F’: NEW DELHI BEFORE SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTNAT MEMBER

ITA No.5682/DEL/2025 [Assessment Year: 2012-13] Newage Capital Services Private ITO, Ward-18(2), Limited, New Delhi-110002 4th Floor, Punjabi Bhawan, Vs Rouse Avenue, New Delhi-110002 PAN-AAACN4542K Assessee Revenue Assessee by Shri M.P. Rastogi, Adv. Shri Shivam Malik, Adv. Revenue by Shri Mukesh Kumar Jha, CIT-DR Date of Hearing 20.04.2026 Date of Pronouncement 15.05.2026

ORDER PER AMITABH SHUKLA, AM,

This appeal filed by the assessee is against order dated 08.08.2025 of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 30.12.2019 passed u/s 143(3) r.w.s147of the Income Tax Act, 1961 pertaining to Assessment Year 2012-13. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

2.

The assessee has raised following grounds of appeal:-

ITA No.5682/Del/2025

“1. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in confirming the action of the ld. AO in adding a sum of Rs. 11,00,00,000 u/s 68. The action of ld. CIT (A) is illegal, unjustified, arbitrary and against the facts of the case. 2. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in not adjudication additional ground filed by the appellant challenging the validity of notice under section 148 being ex- facie illegal, arbitrary and without jurisdiction leading to all subsequent proceedings as well as the assessment order ex-facie, illegal, arbitrary and without jurisdiction which needs to be annulled. 3. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in confirming additions of Rs 11,00,00,00/- u/s 68 on incomplete understanding of facts. The reasoning and the conclusion drawn by the CIT(A) to confirm the aforesaid addition is without any substance and the same deserves to be quashed. 4. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in confirming additions of Rs 11,00,00,00/- u/s 68 ignoring the fact that out of the above an amount of Rs.2,70,00,000/- had already been returned by the appellant in the current assessment year itself. 5. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in confirming additions of Rs 11,00,00,00/- u/s 68 ignoring the fact that the source of the such funds has been duly explained by the appellant and the same has also been confirmed the relevant parties in their reply to notice issued u/s 133(6) of the Act 6. In the facts and circumstances of the case learned Commissioner of Income Tax (Appeals) (NFAC) has erred in confirming additions of Rs 11,00,00,00/- u/s 68 ignoring the fact that the explanation/ submission made by the appellant regarding the transaction and without giving any reasons as to why the explanation/ submission of the appellant are not satisfactory which is the primary requirement for invocation of section 68 of the Act.”

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ITA No.5682/Del/2025

3.

At the outset, the ld. Counsel for the assessee invited out attention to its grounds of appeal no.2 (supra) and submitted that the ld. CIT(A) has erred in non-adjudicating the additional ground of appeal, being a legal ground, raised by it during appellate proceedings. It was submitted that on 26.08.2024, the appellant had raised the said additional ground to NFAC on 26.08.2024. Our attention was invited to the appellate order passed by the ld. CIT(A) submitting that the impugned additional ground being a legal ground was not adjudicated. It was accordingly requested that the matter may be considered for remission to ld. CIT(A).

4.

The ld. DR did not oppose the move of the appellant assessee.

5.

Heard both the parties and perused the material on records. The appellant through this voluminous paper book has placed on records its letter dated 26.08.2024 addressed to NFAC which included an additional ground being a legal ground challenging the validity of proceedings under section 148. We have noted from the order of the ld. CIT(A) that the said ground finds no mention in the appellate order and thus the allegation of non-adjudication raised by the assessee is correct. Be that as it may be, in the interest of justice, we deem it appropriate to remit the matter back to the file of the ld. CIT(A) with the directions to re-adjudicate the impugned additional ground being a legal ground, in accordance with law and after giving due opportunity of being heard.

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ITA No.5682/Del/2025

The appellant assessee shall comply with all the statutory notices issued to him. The appeal of the assessee is therefore allowed for statistical purposes.

6.

As the assessee has succeeded in its ground of appeal no.2, all other grounds raised by it had become cosmetic in nature and hence left open.

7.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 15th May, 2026.

Sd/- Sd/- [RAJ KUMAR CHAUHAN] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 15.05.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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