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Facts
The assessee, Accord Electropower Pvt. Ltd., appealed against an order confirming an addition of Rs. 1,30,87,124/- under Section 68 of the Income Tax Act. This addition was based on the Assessing Officer's finding that the purchase of shares by four individuals was not genuine.
Held
The Tribunal noted that the CIT(A) dismissed the assessee's appeal without considering their reply and without providing independent findings. Therefore, the Tribunal decided to remand the matter back to the CIT(A) for fresh adjudication.
Key Issues
Whether the addition made by the AO under Section 68 of the Act, holding the purchase of shares as non-genuine, is justified. Whether the CIT(A) correctly dismissed the appeal without considering the assessee's submissions and providing findings.
Sections Cited
68, 143(3), 144B, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: SHRI MAHAVIR SINGH, HON’BLE & SMT. RENU JAUHRI, HON’BLE
The above captioned appeal is preferred by the assessee against the order dated 11.09.2025, passed by Ld. CIT(A)/NFAC, Delhi u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as, “Act”] for A.Y. 2018-19 in Appeal No. NFAC/2017-18/10087520. The Assessment was framed by the Assessing Officer [for short, “AO”] u/s 143(3) r.w.s 144B of the Act, vide order dated 02.09.2021. s 2. Although the assessee has raised five grounds of appeals, the sole substantive issue involved relates to addition of Rs. 1,30,87,124/- u/s 68 of the Act by holding the purchase of shares of the assessee company by four individuals as non-genuine.
1 | P a g e 5411_DEL_2024_Accord Electropower Pvt Ltd Noida 2.1 Briefly stated, the genuineness and creditworthiness of these shareholders were not proved, therefore, Ld. AO made the impugned addition u/s 68 in the hands of the assessee. During appellate proceedings, additional evidences were submitted by the assessee, in respect of which a remand report was sought from the Ld. AO. Based on the remand report, Ld. CIT(A) dismissed the assessee’s appeal without considering the assessee’s reply dated 06.09.2024 and has also not given any findings of his own as regards the merits of the issue.
After hearing the rival submissions and upon careful consideration of the material on record, we deem it appropriate to remand the matter to Ld. CIT(A) for fresh adjudication after considering the assessee’s submissions and to pass a speaking order.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 28-01-2026.