SHADAB AHMED SIDDIQUI,DELHI V. ACIT, DELHI

ITA 2740/DEL/2025

AI Insights

The case involves appeals by Shadab Ahmad Siddiqui against the orders of the Commissioner of Income Tax (Appeals)-23, New Delhi, which sustained the additions made by the AO under section 69A of the Income-tax Act, 1961. The additions were based on amounts written on loose sheets found during a search operation. The Tribunal noted that both the lower authorities had passed their orders ex parte without the presence of the assessee, leading to the decision to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838177 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 25-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRANTI
• Assessee Lawyers: RAJEEV AHUJA
• Keywords: Search and seizure; Deemed to accrue or arise in india
• Section: 132; 153A

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 Nos.2739 & 2740/Del/2025 (Assessment Years: 2017-18& 2018-19) Shadab Ahmad Siddiqui, B 340, Street No. 5, MandwaliFazilpur, Delhi Vs. ACIT, Central Circle-03, New Delhi (Appellant) (Respondent) PAN: DEAPS7337P Assessee by : Shri Rajeev Ahuja, Adv Shri Harshit Ahuja, Adv Shri Sikhar Bansal, Adv Revenue by: Ms. Kranti, CIT DR Date of Hearing 29/01/2026 Date of pronouncement 20/02/2026 O R D E R PER M. BALAGANESH, A. M.: 1. The appeals in ITA Nos. 2729 & 2740/Del/2025 for AYs 2017-18 ad 2018-19, arises out of the order of the ld Commissioner of Income Tax (Appeals)-23, New Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 28.02.2025 against the order of assessment passed u/s 153A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 24.09.2021 by the Assessing Officer, ACIT, Central Circle-3, New Delhi (hereinafter referred to as ‘ld. AO’). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience. Printed from counselvise.com ITA Nos. 2739 & 2740/Del/2025 Shadab Ahmad Siddiqui Page | 2 2. With the consent of both the parties, the facts relevant for AY 2017- 18 are taken up for adjudication and the decision rendered thereon shall apply with equal force for AY 2018-19 also except with variance in figures. 3. The only issue to be decided in the appeal for AY 2017-18 is as to whether the ld CIT(A) was justified in sustaining the addition of Rs. 1,50,000/- made u/s 69A of the Act by treating the amounts written in loose sheets as deemed income of the assessee. 4. We have heard the rival submissions and perused the materials available on record. The return of income for AY 2017-18 was filed by the assessee on 26.03.2018 declaring total income of Rs. 3,22,330/- which was duly processed u/s 143(1) of the Act on 03.10.2018. A search and seizure operation was conducted u/s 132 of the Act in the case of Shri Dinesh Tyagi/ Pradip Tyagi / DKrrish Builders Pvt. Ltd and others on 16.05.2018. The case of the assessee was also covered in operation u/s 132 of the Act. Notice u/s 153A of the Act stood issued to the assessee on 16.03.2020. In response to the said notice, the assessee filed return of income declaring total income of Rs. 3,22,050/-. The ld AO had noted in the assessment order that the assessee is working under Shri Ram Avatar Agarwal as keeper of sales and purchase of properties related to Dinesh Tyagi and others group. For the year under consideration, the assessee had disclosed his income under the head income from business and income from other sources. During the course of assessment proceedings, a show cause notice was issued to the assessee to explain the transaction as detailed in page No. 44, Annexure A-2 seized from Flat-44, Plot No. 15, DeshBandhu Society, Patparganj, Delhi which is premises of the assessee. No reply was filed by the assessee in response to the show cause notice. Accordingly, the ld AO was compelled to make an addition of Rs. Printed from counselvise.com ITA Nos. 2739 & 2740/Del/2025 Shadab Ahmad Siddiqui Page | 3 1,50,000/- based on the contents written on the loose sheets u/s 69A of the Act as deemed income in the assessment completed u/s 153A of the Act on 24.09.2021. There was absolutely no appearance before the ld CIT(A) despite several opportunities granted. The ld CIT(A) upheld the action of the ld AO. 5. Considering the fact that orders of both the lower authorities were passed ex parte without securing the presence of the assessee, we deem it fit and appropriate to restore this appeal to the file of the ld AO for de novo adjudication in accordance with law in the interest of justice and fairplay by affording one last opportunity to the assessee to appear before the ld AO either in person or through authorized representative and furnish requisite details from time to time. The ld AO is also directed to afford sufficient opportunity to the assessee to put forth his contentions. With these observations, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 20/02/2026. -Sd/- -Sd/- (CHALLA NAGENDRA PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20/02/2026 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT Printed from counselvise.com "