QUANTUM GLOBAL SECURITIES LIMITED,MUMBAI V. ITO, WARD- 20(3), DELHI

ITA 3045/DEL/2025

AI Insights

Quantum Global Securities Limited appealed against the order of the National Faceless Appeal (NFAC), which had dismissed their earlier appeal concerning an assessment order by the Assessing Officer (AO). The AO had made significant additions to the assessee's income, including unexplained cash credits and disallowances of expenses, leading to a revised total income assessment. The Tribunal noted that the assessee had not appeared before the NFAC, and thus the appeal was decided based on the grounds and facts presented by the assessee. The Tribunal found it just to restore the matter to the NFAC to allow the assessee a final opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783029 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 06-05-2025
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SIDHU
• Assessee Lawyers: MOHIT CHOUDHARY
• Keywords: Unexplained cash credit; Rule 8D; Bogus
• Section: 147; 148; 144; 68

Judgement Text

" ITA No. 3045/ Del/ 2025 Quantum Global Securities Ltd..vs ITO 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI BEFORE SH. M. BALAGANESH, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER ITANo.3045 /Del/2025 Assessment Year: 2018-19 Quantum Global Securities Limited Office No.301, Stanford Plaza Opp. City Mall, Nr. Oberoi Spring New Link Road Andheri West Mumbai 400053 Pan No. AAACQ0053A Vs ITO Ward 20(3) Delhi (APPELLANT) (RESPONDENT) Appellant by Sh. Mohit Choudhary, CA Ms. Neetu Jain,CA (Through VC) Respondent by Sh. Dayainder Singh Sidhu CIT DR Date of hearing: 11/09/2025 Date of Pronouncement: 28/10/2025 ORDER PER SUDHIR KUMAR, JM: This appeal by assessee is preferred against the order of National Faceless Appeal (NFAC) Delhi [for short hereinafter referred to as the “(Ld. NFAC”] dated 07.09.2024 arising out of the assessment order of the AO dated 29-13-2023 under section 147 r.w.s.144 Printed from counselvise.com ITA No. 3045/ Del/ 2025 Quantum Global Securities Ltd..vs ITO 2 with144B of the Income tax Act 1961,(in short “the Act”),for Assessment Year 2018-19. 2 .The assessee has raised the following grounds in appeal: 1. On the facts and circumstances of the case and law, the learned CIT(A) erred in confirming the action of the AO and sustaining the addition to the extent of Rs. 10,01,94,260/-. 2. On the facts and circumstances of the case and law, the learned CIT(A) erred in confirming the action of the AO in determining and adding unexplained cash credit u/s 68 to the tune of Rs. 9.99.45.856/-. 3. On the facts and circumstances of the case and law, the learned CIT(A) erred in confirming the action of the AO in determining by adding the ad-hock disallowance of expenses to the tune of Rs. 2,25,317/-. 4. On the facts and circumstances of the case and law, the learned CIT(A) erred in confirming the action of the AO in determining by adding Rs. 23,083/- u/s 14 A read with rule 8D. 3. The appeal is time barred by 157 days. The Ld. AR stated that appeal should be filed by 06-11-2024 but filed by the 157 days delay, because the learned counsel of the assessee was suffering from the viral fever. The director of the company Sh. Raju Khan has filed the affidavit in which he explained the cause of delay. The assessee has shown the sufficient cause for not filing the appeal with in time, therefore, we condone the delay and admit the appeal for adjudication. Printed from counselvise.com ITA No. 3045/ Del/ 2025 Quantum Global Securities Ltd..vs ITO 3 4.The brief facts of the case are that assessee is a Limited Company and filed its return of income for the A.Y.2017-18 on 31-12-2018 declaring total income of Rs. 13,85,910/-/-. The return of the assessee was processed u/s 143(1) of the Act .The case was selected for scrutiny through CASS. Show cause notice u/s 147 of the Act was issued. Subsequently notice under section 148 of the was issued, The Assessing officer passed the order under section 144 r.w.s. 144B of the Act on total income of Rs. 20,74,05,310/-. Later on the Assessing Officer found that the assessee has taken the accommodation entry of Rs. 40,00,000/- through a bogus shell /paper company and completed the assessment after making the addition on various heads and assessed the income at Rs. 21,14,05,307/- Aggrieved the order of the Assessing officer the assessee, preferred the appeal before the Ld. NFAC who vide his order dated 07-09-2024 dismissed the appeal against which the assesse is in appeal before the Tribunal. 5. Ld. AR of the assessee submitted that assessee did not appear before the Ld. NFAC and nit filed any documentary evidence. Printed from counselvise.com ITA No. 3045/ Del/ 2025 Quantum Global Securities Ltd..vs ITO 4 6. The Ld. Departmental representative (DR) pointed out that the assessee did not appear before the Ld. NFAC, after filing the appeal. The appeal was rightly rejected. 7. We have heard the parties and perused the material available on record. It is admitted fact that the assessee did not appear before the Ld. NFAC and appeal was decided on the grounds taken and statement of facts of the assessee. Since in the instant case the assessee did not appear before the Ld. NFAC, therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. NFAC with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. NFAC and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. Printed from counselvise.com ITA No. 3045/ Del/ 2025 Quantum Global Securities Ltd..vs ITO 5 8. In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28/10/2025 Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 28.10.2025 *SR BHATNAGGAR* Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(Appeals) ` 5.DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "