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Judgment
Per Kavitha Rajagopal, JM:
This appeal is filed by the assessee, challenging the order of the Learned Commissioner of Income Tax (Appeals) -26 Delhi [‘Ld. CIT(A)’ for short], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2023-24.
As there was no representation on behalf the assessee, we hereby proceed to decide the appeal by hearing the Learned Departmental Representative (“Ld. DR” for short) and on perusal of the materials available on record.
The assessee has raised the following grounds of appeal.
“1.That on facts, circumstances and legal position of the case, Worthy CIT(A), in Appeal No. CIT (A), Delhi- 26/10057/2022-23 has erred in passing order dtd. 18.11.2025 in contravention of provisions of S. 250 of Income Tax Act, 1961 (hereinafter referred to as "Act").
2.That on facts, circumstances and legal position of the case, the Worthy CIT(A) has erred in confirming the disallowance of Rs. 4,29,30,623/ made by the Ld. AO u/s 37, without any incriminating material establishing that the impugned purchase transactions were accommodation entries and also failing to appreciate the business nature of the expenditure and further that even otherwise, entire amount of purchase could not have been added.
3.That on facts, circumstances and legal position of the case, the order passed by the Ld. AO and then by Worthy CIT(A) deserves to be quashed since the same have been framed in extreme haste and without affording reasonable opportunity of being heard to the appellant.
4.That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same.”
Brief facts of the case are that, the assessee company was incorporated on 12.06.2000 and was engaged in providing integrated design, engineering, procurement, construction and project management services for water infrastructure, process and metallurgy plants, power plants, and mines and mineral processing. The assessee filed its original return of income u/s 139(1) of the Income-tax Act, 1961 (hereinafter referred as "Act") for the year under consideration dated 30.11.2023 declaring total loss of Rs. 80,94,07,755/-.
The assessee’s case was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) and notices u/s 143(2) and 142(1) of the Act was duly issued and served upon the assessee.
The Ld. A.O. sought for various details/information from the assessee and the assessee had filed relevant details. After considering the submission of the assessee the Ld. A.O. passed the assessment order dated 28.03.2025.
Aggrieved by the assessment order, the assessee was in appeal before the first appellate authority, who vide an ex-parte order dated 18/11/2025 dismissed the appeal on the ground that the assessee was non-compliant during the appellate proceedings.
Aggrieved, the assessee is in appeal before us, challenging the order of the Ld. CIT(A) on the abovementioned grounds.
We have heard the Ld. Departmental Representative (‘DR’ for short) and perused the materials available on record. It is observed that the assessee has challenged the assessment order before the first appellate authority where the Ld. CIT(A) vide an ex-parte order has dismissed the appeal filed by the assessee for non-prosecution.
Though the assesseehas raised various grounds. It is observed that the Ld. CIT(A) has not decided the issue in hand on the merits of the case for the reason that in-spite of six notices issued to the assessee on various dates the assessee was non-compliant throughout the appellate proceedings and has also failed to produce any documentary evidences neither to substantiate its claim nor for contradicting the findings of the lower authority. In order to extend the assessee with one more opportunity to present its case before the first appellate authority, we deem it fit to remand this issue back to the file of the Ld. CIT(A) with a direction that the assessee shall cooperate with the proceedings before the first appellate authority and to produce all relevant documentary evidences in support of its claim. The Ld. CIT(A) is also directed to adjudicate the issues de-novo on the basis of the documentary evidences, if any, filed by the assessee and on the basis of the merits of the case and in accordance with law.
In the result, the appeal filed by the assessee is hereby allowed for statistical purpose.