VIDHU GUPTA,NOIDA V. DCIT, CENTRAL CIRCLE-8, DELHI

ITA 1459/DEL/2025

AI Insights

This case involves an appeal by Vidhu Gupta against the order of the Commissioner of Income Tax (Appeals) -25, Delhi, which pertained to the assessment year 2020-21. The primary contention was against the addition of Rs. 3,00,00,000 under section 69 of the Income-tax Act, 1961, made by the Assessing Officer (AO) following a search and seizure operation. The assessee argued that the orders were based on unfounded assumptions and lacked adherence to the principles of natural justice, particularly the right to cross-examine. The CIT(A) had dismissed the appeal due to non-compliance as the assessee failed to submit necessary documents or appear for hearings. The Tribunal, considering the circumstances, decided to remand the case back to the CIT(A) for a thorough re-examination, providing the assessee another opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774714 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 10-03-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DAYAINDER SINGH SINDHU
• Assessee Lawyers: TANYA
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 132; 69

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”, DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH. MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1459/DEL/2025 Assessment Year: 2020-21 Vidhu Gupta, H-601, Vrinda City, sector Phi-4, Greater Noida Uttar Pradesh PAN No. AIJPG5467A Vs. Deputy Commissioner of Income Tax, Central circle - 8 Delhi (APPELLANT) (RESPONDENT) Appellant by Ms. Tanya, Advocate Respondent by Sh. Dayainder Singh Sindhu CIT DR Date of hearing: 21/08/2025 Date of Pronouncement: 10/09/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of the Commissioner Of Income Tax- Appeals -25 Delhi [hereinafter referred to as “Ld. CIT(A))”] vide order dated 13-01- 2025 pertaining to A.Y. 2020-21 arising out the assessment order dated 31.12.2022 u/s.153 r.w.s. 143(3) of the Income-tax Act, 1961, (in short ‘the Act’). Printed from counselvise.com 2 2. The assessee has raised the following grounds in appeal as under: 1. The assessment of the Ld. AO making an addition of Rs. 3,00,00,000/- under section 69 of the Act is bad in law and on the facts and circumstances of the case. 2. The order passed by the authorities below are based merely on unfounded assumptions / projection, surmises, and conjectures. 3. The order passed by the authorities below are in utter disregard of the principles of natural justice. Further, the assessee was deprived of the opportunity to cross examine the persons whose statements were used by Ld. Assessing Officer. 4. The order by the authorities below have passed mechanically, without application of mind, and are premised upon extraneous material found by the Ld. Assessing Officer which does not pertain to the Appellant. 5 .Ld. AO has erroneously and invalidly assumed the jurisdiction under section 153C. The impugned order is liable to be quashed on this ground alone. 6. The assessment framed under section 153C r.w.s. 143(3) is barred by limitation. 7. The impugned order is liable to be set aside for it having been passed ex-parte. 8. The above mentioned grounds are independent and without prejudice to one another. 9. The assessee craves leave to add, amend alter, or withdraw all or any of the grounds of appeal either before or at the time of the hearing of the appeal. 3. The brief facts of the case are that the assessee filed its return of income u/s 139(1) of the Act for A.Y. 2020-21 on 16-12-2020 declaring income of Rs. 11,67,920/-. The same Printed from counselvise.com 3 was processed u/s 143(1) of the Act. A search & seizure operation action u/s 132 of the Act was conducted on 03- 02-2021 and 27-02-2020 on M/s Prizm Holography and Security Films Pvt. Ltd., Navneet Gupta, and Anwar Dhebar, A. Dhebar Biuldcon. During the course of search various documents / material were seized and statement was recorded. The Assessing officer of the searched person recorded his satisfaction establishing that the seized material /documents pertain to Sh. Vidhu Gupta. The relevant material was handed over the AO of Central Circle - 29. Notices were issued to the assessee and show cause notice was also issued to the assessee. The Ld. AO completed the assessment proceeding after considering the reply submitted by the assessee and assessed the income at Rs. 3,11,67,920/-. 4 Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld.CIT(A) who vide his order dated 13- 01-2025 dismissed the appeal. Being aggrieved the order of the Ld. CIT(A) the assessee is in appeal before the Tribunal. 5. ld. AR of the assessee submitted that the Ld.CIT(A) passed the ex-parte orders. He also submitted that the opportunity of the being heard be provided to the assessee. Learned authorized representative for Department of Printed from counselvise.com 4 Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the Ld. CIT(A). 6. We have heard the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. CIT (A), the assessee did not file his submissions, for which the appeal was dismissed in non-compliance by the Ld. CIT(A). 7. Since in the instant case the assesse has failed to file his submission after availing the various opportunity. The assessee did not appear before the Ld. CIT(A), after filing the appeal for which the Ld. CIT(A) dismissed the appeal in non-compliance after deciding the grounds raised by assessee. 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. CIT(A) with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. CIT(A) and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes. Printed from counselvise.com 5 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court 10.09.2025. Sd/- Sd/- (MANISH AGARWAL) ( SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Neha, Sr. PS Date:10.09.2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI Printed from counselvise.com "