ITJ Retails Pvt Ltd. vs Assessing Officer

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-29 New Delhi [hereinafter referred to as (“Ld.CIT(A)”] vide order dated 13-02-2026 arising out the assessment order dated 16-05-2023 u/s 147 r.w.s. 144B of the Income Tax Act 1961 (in short “the Act” pertaining to A.Y. 2017-18.

The brief facts of the case are that as per the information available on Insight portal & flagged by the Directorate of Income Tax (System) as per risk profiling, the information relating to report on bogus LTCG reputed stocked by issuing ante dated forged contracts notes. It has been stated in the said report that during the search in the case of Trade Next Securities Ltd. (erstwhile Lifeline Securities Ltd) along with Kundu Group and it is found that relevant parties are available exemption u/s 10(38) of the Act on LTCG. As per the information bogus contract notes for purchases of shares were found and various benefiters have taken accommodation entries of Non-genuine LTCG by paying a commission of 2% ITJ retails Pvt. Ltd. is also a beneficiary of bogus LTCG. Statutory notices on the various date were issued to the assessee but no reply was filed. The Assessing Officer completed the assessment after making the addition of Rs. 69,72,000/- and penalty proceedings also initiated.

Aggrieved by the order of the Assessing Officer, the assessee preferred the appeal before Ld. CIT(A), who vide order dated 13-02-2026 dismissed the appeal for non-prosecution. Being aggrieved the order of the Ld. CIT(A) the assessee is in appeal before the tribunal on the various grounds.

The ld. AR of the assessee submitted that Ld. CIT(A) passed the order in the absence of the assessee. The order was passed without being heard to the assessee. The Ld. DR of the Revenue submitted that the Ld. CIT(A) passed the order on merits based on the material available on record.

We have heard both 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 before him, for which the Ld. CIT(A) dismissed the appeal for non-prosecution.

Since in the instant case the Ld.CIT(A) has dismissed the appeal without being heard to the 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 substantiate 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.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 25.08.2026.