M/S DEVON METALS PVT. LTD,NEW DELHI V. INCOME TAX OFFICER WARD 7(1), DELHI

ITA 1435/DEL/2025

AI Insights

The case involves Devon Metals P. Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals)-24, New Delhi, which upheld the additions made by the Assessing Officer regarding unexplained cash deposits and unsecured loans due to lack of documentary evidence. The appellant faced difficulties in presenting their case during the assessment and appellate proceedings due to the illness and subsequent death of the company's director, who managed its tax affairs. The Tribunal, considering the circumstances and the submissions, decided to restore the matter to the Assessing Officer for a fresh evaluation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838084 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 08-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: RAGHAV SHARMA; CHARTERED ACCOUNTANT
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अधिकरण धिल्ली पीठ “सी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य एिं श्री ब्रजेश क ुमार स िंह, लेखाकार सिस्य क े समक्ष IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER& SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER आअसं.1435/धिल्ली/2025(नि.व. 2017-18) ITA No.1435/DEL/2025 (A.Y.2017-18) Devon Metals P. Ltd., 611 Surya Kiran Building, 19 K.G. Marg, New Delhi 110001 PAN: AABCL-5533-B ...... अपीलार्थी/Appellant बिाम Vs. Income Tax Officer, Ward 7(1) CR Building, New Delhi 110002 ......प्रनिवादी/Respondent अपीलार्थी द्वारा/ Appellant by: Shri Raghav Sharma, Chartered Accountant प्रधििािीद्वारा/Respondent by: Shri Om Prakash, CIT-DR सुिवाई की निथर्थ/ Date of hearing : 18/02/2026 घोषणा की निथर्थ/ Date of pronouncement : 18/02/2026 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-24, New Delhi [in short ‘the CIT(A)’] dated 29.11.2024, for AY 2017-18. 2. At the outset, Shri Raghav Sharma, ld. AR appearing for the assessee, submitted that the assessee does not wish to press Application dated 25.08.2025 seeking admission of additional grounds of appeal challenging validity of notice dated 09.08.2018 issued u/s. 143(2) of the Income Tax Act,1961(hereinafter Printed from counselvise.com 2 ITA No.1435/DEL/2025 (A.Y.2017-18) referred to as ‘the Act’) . In view of the statement made at the Bar, the Application for Admission of additional grounds is dismissed as not pressed. 3. The ld. AR of the assessee submitted that during the course of assessment proceedings, the assessee could not effectively represent its case before the Assessing Officer (AO) as, Shri Devender Kumar Mittal, Director, who was looking after tax affairs of the company was critically ill. It was further submitted that even during the first appellate proceedings, the appeal could not pursue its appeal as the said Director after prolonged illness passed away. The ld. AR of the assessee prayed for an opportunity before the lower authorities to make submissions and furnish necessary documentary evidences. 4. Per contra, Shri Om Prakash, representing the department vehemently supported the impugned order. However, he fairly submitted that he has no serious objection if the matter is restored to the file of the Assessing Officer/CIT(A) for fresh adjudication. 5. Both sides heard, orders of the authorities below examined. A perusal of the assessment order reveals that the AO had made addition of Rs.5,59,50,000/- in respect of unexplained cash deposits and an addition of Rs.1,76,65,000/- on account of unsecured loans in absence of any documentary evidences furnished by the assessee. In proceedings before the CIT(A), there was no response to the notices from the assessee. In the absence of any controverting material, the CIT(A) upheld the assessment order. Considering entire facts of the case and submissions made from the assessee’s side, we deem it appropriate to restore the matter back to AO for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. Printed from counselvise.com 3 ITA No.1435/DEL/2025 (A.Y.2017-18) 6. The assessee shall respond to the notice(s) issued by the AO, without fail. 7. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Wednesday the 18th day of February, 2026. Sd/- Sd/- (BRAJESH KUMAR SINGH) (VIKAS AWASTHY) लेखाकार सदस्य/ACCOUNTANT MEMBER न्यानयक सदस्य/JUDICIAL MEMBER धिल्ली / Delhi, ददिांक/Dated 18/02/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलार्थी/The Appellant , 2. प्रनिवादी/ The Respondent. 3. The PCIT 4. ववभागीय प्रनिनिथि, आय.अपी.अथि., सिल्ली /DR, ITAT, धिल्ली 5. गार्ड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "