DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI vs. RAKESH SHARMA, NEW DELHI

Brief facts of the case are that the assessee filed original return of income on 23.03.2012 declaring income of Rs10,50,704/-. A search and seizure proceeding u/s 132 of the Act was carried out on the Alankit Group, Sh. Alok K Agarwal and some of the close associates and key employees of Sh. Alok K Agarwal on 18.10.2019. Incriminating seized evidences recovered during the course of search proceedings clearly establish that Sh. Alok Agarwal, had facilitated acquisition of shares of several shell entities for benefit of his own group as well as his known associates and clients. He has received and provided accommodation entries and also facilitated bogus short-term capital loss to set off long-term capital gains to various persons through several entities managed and controlled by him and his associates. Some incriminating documents were found from the premises in the name of the assessee; hence, case of the assessee was centralized to Central Circle-28, New Delhi. Notice u/s 153C of the Act dated 28.12.2021 was issued. The assessee filed his return of income on 10.01.2022 declaring income of Rs. 10,50,704/-. Notice u/s 143(2) of the Act dated 17.03.2023, notice u/s 142(1) of the act were issued on 05.02.2022, 08.03.2022, 23.09.2022. the assessee filed his submissions. On completion of

Against assessment order dated 31.03.2023 of ld. AO, the assessee filed appeal before Ld. CIT(A) which was allowed vide order dated 19.01.2026.

Being aggrieved, the Revenue preferred application for condonation of delay of 27 days in filing appeal and appeal.

In application for condonation of delay of 27 days, it is submitted that the delay was due to heavy workload in time barring scrutiny cases, appeal effect etc. The explanation for condonation of delay does not smack of mala fides as the revenue has not gained anything by not filing of appeal within period of limitation. Therefore, the delay of 27 days in filing appeal before the Tribunal is condoned.

Ld. Departmental Representative submitted that Ld. CIT(A) was not justified in relying upon judgment of Hon’ble High Court of Delhi in case of PCIT, Central Circle-1, Delhi vs. Ojjus Medicare Pvt. Ltd. ITA No. 52/2024 even when Revenue has filed a SLP against decision.

Ld. Authorized Representative for assessee referred to chart in terms of judgment of Hon’ble High Court of Delhi Ojjus Medicare pvt. Ltd. reads as under:

From examination of record in light of aforesaid rival contention, it is crystal clear that Ld. CIT(A) vide order dated 19.01.2026, by following ratio of Jurisdictional High Court in Ojjus Medicare Pvt. Ltd. had held the impugned assessment order dated 31.03.2023 to be illegal. Mere pendency of SLP against the judgment of the Jurisdictional High Court is of no consequence. Therefore, the grounds of appeal being devoid of merit are rejected. The grounds of appeal of Revenue are rejected.

In the result, the application for condonation of delay of 27 days in filing appeal is allowed and the appeal of Revenue is dismissed.