Shiva Constech Private Limited vs ACIT Circle 22(2) New Delhi

The brief facts of the case are that the assessee filed the return of income for A.Y.2019-20 declaring total income 91,82,280/- on 26-09-2019The department has information that the assessee company has taken accommodation entry of Rs.54,85,461/- during the F.Y.2018-19. The case of the assessee was reopened under section 147 of the Act. The Assessing Officer concluded that assessee had obtained accommodation entry from Sumit Jindal through bogus companies namely Om Trading Co. The assessee has failed to furnish any evidences against the bogus entry. The Assessing Officer completed the assessment under section 147 r.w.s. 144B after making the addition of Rs.54,85,461/- under section 68 of the Act.

Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. NFAC, who vide its order dated 19-11-2025 dismissed the appeal of the assessee. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal.

We have heard the Ld. DR and perused the material available on record. It is evident from the order that the appeal was dismissed by exparte because the assessee did not file any submissions before the Ld. NFAC.

Since in the instant case the appeal was decided by ex-parte, 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 12.08.2026.