SMT. FAHMEEDA BANO,LUCKNOW vs. NFAC, DELHI

PER ANADEE NATH MISSHRA:A.M. (A) This appeal has been filed by the assessee against the impugned appellate order of learned Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (for short ‘learned CIT(A)’, Delhi dated 24.09.2025 for the AY 2017-18. The assessee has raised the grounds of appeal are as under:

“1. That on the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals), NFAC erred in confirming

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the addition of Rs 18,22,300/- made by the Assessing Officer under section 50C of the Income-tax Act. 1961 treating the same as deemed capital gains

6 That the learned CIT(A) believed on the assessment order which suffers from mistake by blindly adopting DVO report That the learned CIT(A) failed to appreciate that the assessment as well as the appellate order suffer from violation of principles of natural Justice as the assessee was not granted effective opportunity to rebut the valuation report and consequential proposed addition. That the learned CTT(A) erred in law and on facts in dismissing the appeal by merely reiterating the findings of the Assessing Officer without dealing with the submissions made by the assessee.

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8 That the learned CIT(A) erred in law in confirming the addition despite the fact that no real income accrued or arose to the assessee and the addition is purely on the basis of notional and hypothetical income.”

(B) The present appeal has been filed beyond the time prescribed under section 253(3) of the Income Tax Act, 1961 (the Act). The assessee has filed application for condonation of delay in filing of the present appeal. The learned Departmental Representative expressed no objection to condonation of delay, as requested by the appellant assessee. In view of the reasons stated in the application, the delay in filing of the appeal is condoned under section 253(5) of the Act and the appeal is admitted.

(C) At the time of hearing, learned Counsel for the assessee submitted that the assessment order as well as the impugned appellate order pertaining to the present appeal have been passed without providing reasonable opportunities to the assessee. Therefore, he submitted, the issues in dispute should be restored back to the file of the Assessing Officer for denovo order after providing reasonable opportunity to the assessee. The ld. Departmental Representative expressed no objection to this. He left the matter to the discretion of the Bench. Both sides have been heard. Materials on record have been perused. In view of the foregoing discussion, and in the facts and circumstances of the case, the impugned appellate order of learned CIT(A) is set-aside and the issues in dispute in the present appeal are restored back to the file of the Assessing Officer with the direction to pass denovo assessment order in accordance with law after providing reasonable opportunity to the assessee.

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(D) All the grounds of appeal in present appeal are treated as disposed off in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 21/04/2026)

Sd/- (ANADEE NATH MISSHRA) Accountant Member Date: 21/04/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A)

Senior Private Secretary Income Tax Appellate Tribunal Lucknow