MANGAT RAM SHARMA HUF,DELHI V. ITO, WARD 47(1), DELHI

ITA 7040/DEL/2025

AI Insights

The case involves an appeal by Mangat Ram Sharma HUF against an ex-parte order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2017-18. The appeal was initially not pursued by the assessee's Authorized Representative, leading to an ex-parte decision. The assessee, represented by Shri Amit Rustogi, Chartered Accountant, argued for a chance to present their case, claiming a prima facie good case on merits. The department, represented by Shri Dayainder Singh Sidhu, CIT-DR, opposed the appeal, citing previous opportunities given to the assessee which were not utilized. The Tribunal decided to set aside the ex-parte order and remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839888 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 03-11-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: AMIT RUSTOGI; 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.7040/धिल्ली/2025(नि.व. 2017-18) ITA No.7040/DEL/2025 (A.Y.2017-18) Mangat Ram Sharma HUF, 4056-57, Second Floor, Naya Bazar, Delhi 110006 PAN: AAOHM-8332-B ...... अपीलार्थी/Appellant बिाम Vs. Income Tax Officer, Ward-47(1), Drum Shape Building, New Delhi 110003 .....प्रनिवादी/Respondent अपीलार्थी द्वारा/ Appellant by: Shri Amit Rustogi, Chartered Accountant प्रधििािीद्वारा/Respondent by: Shri Dayainder Singh Sidhu, CIT-DR सुिवाई की निथर्थ/ Date of hearing : 23/02/2026 घोषणा की निथर्थ/ Date of pronouncement : 23/02/2026 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 28.08.2025, for Assessment Year 2017-18. 2. Shri Amit Rustogi, appearing on behalf of the assessee submits that after filing appeal before the CIT(A), the Authorized Representative who was engage to represent the assessee did not pursue the appeal. The assessee was under bonafide impression that the appeal is being properly pursued by the AR. The ld. AR thus prayed for one more opportunity to the assessee to make submissions before the CIT(A). He contended that the assessee has prima facie good case on merits and if opportunity is granted the assessee would be able to substantiate that the addition Printed from counselvise.com 2 ITA No.7040/DEL/2025 (A.Y.2017-18) made by the Assessing Officer (AO) are unsustainable. 3. Per contra, Shri Dayainder Singh Sidhu representing the department strongly supporting the impugned order stated that despite multiple opportunities given by the AO, the assessee failed to respond to the notice(s). He thus, prayed for upholding the impugned order and dismissing appeal of the assessee. 4. Both sides heard. A perusal of the impugned order shows that it has been passed in ex parte proceedings. Four opportunities were granted to the assessee by the First Appellate Authority, however, none appeared on the dates fixed to make submissions on behalf of the assessee. It has been contended that the Authorized Representative who was authorized to make submisions before the CIT(A) failed to make submissions on behalf of the assessee and that the assessee was under the bonafide impression that he was being properly represented before the First Appellate Authority. Considering entire facts of the case, we deem it appropriate to restore appeal to the CIT(A) for fresh adjudication, after affording reasonable opportunity of making submissions to the assessee, in accordance with law. 5. The assessee shall respond to the notice(s) served by the CIT(A), without fail. 6. 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 Monday the 23rd day of February, 2026. Sd/- Sd/- (BRAJESH KUMAR SINGH) (VIKAS AWASTHY) लेखाकार सदस्य/ACCOUNTANT MEMBER न्यानयक सदस्य/JUDICIAL MEMBER धिल्ली / Delhi, ददिांक/Dated 27/02/2026 Printed from counselvise.com 3 ITA No.7040/DEL/2025 (A.Y.2017-18) 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 "