RASHMI MAGAZINE,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-15, NEW DELHI, NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”, DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. NAVEEN CHANDRA, ACCOUNTANT MEMBER

ITA No.6092/DEL/2025 Assessment Year: 2014-15 Rashmi Magazine, Vs. DCIT, Central Circle-15, New 208, Golf Links, Delhi New Delhi – 110 003 PAN No. AITPM1724N (APPELLANT) (RESPONDENT)

Appellant by Sh. Prnay Mohan Govil, Adv. ([Through VC] Respondent by Sh. Mahesh Kumar CIT(DR)

Date of hearing: 25/05/2026 Date of Pronouncement: 24/06/2026

ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeal-26), New Delhi [hereinafter referred to as “Ld. CIT(A))”] vide order dated 16-7-2025 pertaining to A.Y. 2014-15 arising out the assessment order dated 24-3-2024 u/s.153C r.w.s. 144 of the Income-tax Act, 1961, (in short ‘the Act’). 2. The assessee has raised the following grounds in appeal as under: 1. AO has erred in law and on facts in assuming jurisdiction under section 153C of the Act against the appellant, without there being any incriminating material belonging to or relating to appellant found during the course of search conducted in the case of the SMG group.

Therefore, the impugned notice dated 30.3.2023 and the consequent proceedings arising therefrom are liable to be quashed on this ground. 9. Appellant hereby prays for seeking permission for additional documents or other evidence which was not furnished earlier at the time of assessment before the AO or before the Ld. CIT(A). 3. The brief facts of the case are that the assessee had filed its return of income for the A.Y. 2014-15 on 31.07.2014 declaring total income of Rs. 9,71,530/-. A search & seizure operation/s 132 of the Act was conducted in the case of Sh. Amar Sarin as part of Sushen Mohan Gupta Group of cases (SMG Group) on 02.01.2020 at the premises situated at H-65, Connaught Circus, Delhi. During the search proceedings digital data of electronics devices such as mobile phone, email backups and tally laptop data were seized in a hard disc drive. On perusal of the seized data/documents it was noticed certain documents and information contained therein pertains to the appellant-Smt. Rashmi Magzine. Subsequently, a notice u/s 153C of the Act was issued to the 30.03.2023. In response to the same, no income tax return was filed by the assessee. Statutory notice u/s 143(2) of the Act could not be sent as the return of income was not filed by the assessee in compliance to notice u/s 153C of the Act. Thereafter, assessment was completed by the AO at Rs.4,16,96,530/- u/s 153C r.w.s. 144 of the Act. Against the above, assessee preferred appeal before the Ld. CIT(A), who vide his impugned order dated 16.7.2025 has partly allowed the appeal of the assessee by holding as under:- 4.1 I have carefully considered the facts of the case and the grounds of appeal filed by the appellant. A search & seizure operation/s 132 of the Act was conducted in the case of Sh. Amar Sarin as part of Sushen Mohan Gupta Group of cases (SMG Group) on 02.01.2020 at the premises situated at H-65, Connaught Circus, Delhi. During the search proceedings digital data of electronics devices such as mobile phone, email backups and tally laptop data were seized in a hard disc drive. On perusal of the seized data/documents it was noticed certain documents and information contained therein pertains to the appellant: Smt. Rashmi Magzine. Subsequently, a notice u/s 153C of the Act bearing DIN & Notice No. ITBA/AST/S/153C/2022-23/1051696048(1) was issued to the 30.03.2023.In response to the same, no income tax return was filed by the appellant. Statutory notice u/s 143(2) of the Act could not be sent as the return of income was not filed by the appellant in compliance to notice u/s 153C of the Act. During the assessment proceedings, the appellant has failed to furnish any details in response to the notices issued u/s 142(1) of the Act, on different dates. Thereafter, the AO had completed the assessment at an income of Rs. 4,16,96,530/- u/s 153C r.w.s. 144 of the Act.

4.2 As per the newly inserted proviso to section 251(1)(a) of the Act, Commissioner (Appeals) in case of order of assessment made u/s. 144 of the Act, may set aside such assessment and refer the case back to the AO for making a fresh assessment. This proviso has been inserted in the Act w.e.f. 01.10.2024. The said proviso to section 251(1)(a) of the Act is reproduced as under: “251. (1) In disposing of an appeal, the Commissioner (Appeals)] shall have the following powers— . in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment; 1. [Provided that where such appeal is against an order of assessment made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment;] 4.3 In the present case the assessment order has been passed u/s 153C r.w.s. 144 of the Act by the AO and there are issues which needs further examination and inquiry by the AO, it’s a fit case for set-aside of assessment made by the AO. In view of the above facts and changes in the Act, as enumerated above, it is felt that the consideration of the submissions/grounds filed by the appellant before the appellate proceedings, are germane to the correct appreciation of the issues under deliberation. 4.4 Therefore, the assessment order passed by the AO u/s. 153C r.w.s. 144 of the Act dated 24.03.2024 is hereby set aside for making fresh assessment, de-novo, after taking into account the above submissions filed by the appellant along with form No. 35. Needless to say, that the AO should, while conducting the set aside proceedings, give proper opportunities of representation to the appellant in view of principles of natural justice and take into account any further submissions which it has to file during the course of the said proceedings. The AO should also conduct all necessary enquiries to verify the submissions filed by the appellant. The appellant is also directed to comply with all the notices/correspondences issued by the AO. 4.5 Therefore, the appeal is set-aside for re-adjudication by the AO afresh and appeal filed by the appellant is disposed of accordingly. 5. In the result, the appeal is “partly allowed”. 4. We have heard both the parties and perused the records. It is an admitted fact that the assessment order has been passed u/s 153C r.w.s. 144 of the Act by the AO and there are issues which needs further examination and inquiry by the AO, thus, it is a fit case for set-aside of assessment made by the AO. Therefore, the assessment order passed by the AO u/s. 153C r.w.s. 144 of the Act dated 24.03.2024 was rightly set aside for making fresh assessment, de-novo, after taking into account the submissions filed by the assessee along with form No. 35 by the Ld. CIT(A), which does not need any interference on our part, hence, we affirm the action of

the ld. CIT(A) and reject the grounds raised by the Assessee. 5. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court 24.06.2026.

Sd/- Sd/- (NAVEEN CHANDRA) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER

SR BHATNAGGAR Date: 24.06.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI