SHAGUN GOEL,DELHI vs. CIT(A), DELHI

आयकर अपीलीय अधिकरण
धिल्ली पीठ “एस एम सी”, धिल्ली
श्री धिकास अिस्थी, न्याधयक सिस्य

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “SMC”, DELHI
BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER
आअसं.7142/धिल्ली/2025 (नि.व. 2018-19)
Shagun Goel,
Flat No. 373, Sangam Apartments,
West Enclave, Pitampura, Delhi 110034
PAN: AEUPG-7813-B

...... अपीलार्थी/Appellant
बिाम Vs.

Commissioner of Income Tax (Appeals),
R. No. 380A CR Building, IP Estate, New Delhi 110002 ..... प्रनिवादी/Respondent

अपीलार्थी द्वारा/Appellant by : None
प्रधििािीद्वारा/Respondent by : Shri Manoj Kumar, Sr. DR

सुिवाई की निथर्थ/ Date of hearing

:
15/12/2025

घोषणा की निथर्थ/ Date of pronouncement
:
15/12/2025

आदेश/ORDER

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against an ex-parte order by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 15.10.2025, for Assessment Year 2018-19. 2. A perusal of the assessment order shows that the assessment in the case of assessee for AY 2018-19 was reopened on the basis of information received, that the assessee has made bogus purchases to the tune of Rs.81,95,949/- from the alleged shell entity M/s. Balaji Trading Company. The assessee is engaged in trading of ferrous and non-ferrous metals. During the course of assessment proceedings,

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the assessee in order to prove genuineness of the purchases made from M/s. Balaji
Trading Company furnished following documents before the AO:-
• party confirmation of accounts;
• invoices, bill wise transport details;
• bank statements highlighting transactions for payment;
• stock statement showing inward supply of material,
• GST returns, etc.

Not convinced with the documents furnished by the assessee, the Assessing
Officer (AO) made addition of 25% of the alleged bogus purchases i.e.
Rs.20,41,487/- u/s.69C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Against the assessment order dated 06.02.2023 passed u/s. 147 r.w.s. 144B of the Act, the assessee filed an appeal before the CIT(A). Since, the assessee failed to respond to the notices issued by CIT(A), the CIT(A) in ex-parte proceedings dismissed appeal of the assessee for non-prosecution.
3. Shri Manoj Kumar representing the department vehemently supporting the impugned order submitted that the assessee has indulged in obtaining accommodation entry from bogus supplier. The AO after examining the documents furnished by the assessee made addition of 25% of the bogus purchases. Since, the assessee failed to make submission before the CIT(A) despite repeated notices, the appeal of the assessee was dismissed for non-prosecution.
4. I have heard the ld. DR and perused the material available on record. It is an admitted fact that the CIT(A) dismissed the appeal on the ground of non‑prosecution and did not adjudicate the grounds of appeal on merits. It is a well settled law that the CIT(A), being the First Appellate Authority, is statutorily

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required under section 250(6) of the Act to dispose of the appeal by passing a speaking order on merits. The CIT(A) does not have the power to dismiss the appeal for non‑prosecution without adjudicating the issues arising from the assessment order. Dismissal of appeal for non-prosecution is contrary to the scheme of the Act and settled judicial principles. In view of the above, the impugned order passed by the CIT(A) cannot be sustained in law. Accordingly, the same is set aside and the matter is restored to the file of CIT(A) with a direction to adjudicate the appeal afresh on merits, after providing reasonable opportunity of making submissions to the assessee, in accordance with law.
6. The assessee shall respond to the notice(s) served by the CIT(A), without fail.
7. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on Monday the 15th day of December,
2025. (VIKAS AWASTHY)

न्यानयक सदस्य/JUDICIAL MEMBER
धिल्ली/Delhi, ददिांक/Dated 29/12/2025

NV/-
प्रतिलिपि अग्रेपििCopy of the Order forwarded to :
1. अपीलार्थी/The Appellant ,
2. प्रनिवादी/ The Respondent.
3. The PCIT/CIT(A)
4. ववभागीय प्रनिनिथि, आय.अपी.अथि., दिल्ली /DR, ITAT, धिल्ली
5. गार्ड फाइल/Guard file.

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BY ORDER,
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(Asstt.