RAHUL KHAITAN,NEW DELHI V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, DELHI

ITA 2958/DEL/2025

AI Insights

The case involves an appeal by Rahul Khaitan against the order of the National Faceless Appeal Centre (NFAC), which confirmed an addition of Rs. 78,41,271 as unexplained income for the Assessment Year 2015-16. The appeal was initially dismissed by the ld CIT(A) for non-prosecution and later by the NFAC ex parte without merit adjudication. The Tribunal found that the principles of natural justice were violated as the assessee was not given a fair opportunity to present his case. Consequently, the Tribunal restored the matter to the NFAC for a fresh decision, instructing that the assessee be given a reasonable opportunity to be heard.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840080 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 02-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 147

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 2958/Del/2025 (Assessment Year: 2015-16) Rahul Khaitan, Flat No. 12, 2nd Floor, 4866/24, Sheel Tara House, Ansari Road, Darya Ganj, New Delhi Vs. Assessment Unit, Income Tax Department, New Delhi (Appellant) (Respondent) PAN: AHCPK944B Assessee by : None Revenue by: Shri Om Prakash, Sr. DR Date of Hearing 27/01/2026 Date of pronouncement 27/01/2026 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.2958/Del/2025 for AY 2015-16, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 04.03.2025 against the order of assessment passed u/s 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 25.05.2023 by the Assessing Officer, ITO, NFAC, Delhi (hereinafter referred to as ‘ld. AO’). 2. None appeared on behalf of the assessee despite issuance of notice. This appeal was listed on 30.10.2025, 18.12.2025 and 27.01.2026 i.e. today. On all these occasions, there was no appearance from the side of the assessee. Hence, we proceed to dispose of this appeal on hearing of Printed from counselvise.com ITA No. 2958/Del/2025 Rahul Khaitan Page | 2 the ld DR and based on the materials available on record. The ground Nos. 1, 3 and 4 raised by the assessee are challenging the violation of principle of natural justice by the ld CIT(A) by deciding the appeal ex parte by ignoring the adjournment filed by the assessee. This goes to the root of the matter and hence, they are taken up first for adjudication. 3. On perusal of the grounds raised by the assessee, the assessee has challenged the confirmation of addition made by the ld AO in the sum of Rs. 78,41,271/- on account of unexplained income. 4. We have heard the Learned DR and perused the materials available on record. On perusal of the order of the ld CIT(A), we find that the ld CIT(A) had dismissed the appeal for non-prosecution by holding that the appeal is treated as not maintainable in view of the non-compliance by the assessee. Having done so, thereafter, he proceeded to adjudicate the issue on merits by simply endorsing the assessment order by reproducing the same in the appellate order. On perusal of the order of the National Faceless Appeal Centre (NFAC), we find that the ld NFAC had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Hence, in the interest of justice and fairplay, we deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes. Printed from counselvise.com ITA No. 2958/Del/2025 Rahul Khaitan Page | 3 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27/01/2026. -Sd/- -Sd/- (CHALLA NAGENDRA PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 25/02/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "