Star Builders & Developers vs ITO

PER MANISH AGARWAL, AM :

The captioned cross-appeals are filed by the assessee and the Revenue against the order dated 07.08.2025 by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 29.12.2019 passed u/s 147/143(3) of the Act pertaining to Assessment Year 2012-13.

Since the appeal filed by the Revenue and Cross-objection filed by the assessee having common and similar issues therefore, both are decided by a common order for the sake of convenience.

Brief facts of the case are that the assessee is a company and filed its return of income, declaring NIL income. The AO has information that the assessee has undertaken cash transaction of INR 3.40 crores and accordingly, the case of the assessee was re-opened by issue of notice u/s 148 of the Act. Thereafter, the re-assessment order was passed wherein total addition of INR 2,86,79,000/- was made by holding that the assessee has received fresh capital of INR 8,55,79,000/- from various persons out of which the source of Rs. 2,86,79,000/- remained unexplained. After considering the submissions, the AO has made the addition of INR 2,86,79,000/- being capital introduced and remained unverified.

Against the said order, the assessee filed appeal before Ld. CIT(A) who vide impugned order dated 07.08.2025 has partly allowed the appeal of the assessee wherein the addition to the extent of INR 31,49,500/- was confirmed and balance addition was deleted after considering the submissions of the assessee.

Aggrieved by the order of Ld. CIT(A), both the assessee and the Revenue are in appeal before the Tribunal by taking various Grounds of appeal mentioned in the appeal memo.

The assessee in Ground of appeal Nos. 1 to 4 has challenged the re-opening of the assessment.

Heard the contentions of both the parties at length and perused the material available on record. It was the submission of Ld.AR that during the course of appellate proceedings, the assessee has raised additional Grounds of appeal wherein the validity of re-opening of the assessment was challenged and for this, he drew our attention to page 146 and onwards of the Paper book wherein the assessee has raised additional Grounds of appeal regarding re-opening of assessment and made a request for the admission of the same before the ld. CIT(A).

The AO has further placed reliance on the judgement of Hon’ble Supreme Court in the case of NTPC reported in 229 ITR 382 (SC) for the admission of the additional grounds of appeal. However, from the perusal of the order of Ld. CIT(A), it is observed that there is no whisper about the additional Grounds of appeal taken by the assessee, challenging the legality of the re-opening of assessment.

In view of these facts, we set aside the order of Ld. CIT(A) and remand the matter back to the file of Ld.CIT(A) with the directions to admit assessee’s additional Grounds of appeal taken on the re-opening of the assessment and decide the same in accordance with law.

Since we have allowed the appeal of the assessee for statistical purposes, the other grounds of appeal taken by both the parties on merits are become academic.

In the, appeal of the assessee in ITA No.6295/Del/2025 for Assessment Year 2012-13 is allowed for statistical purposes and appeal of the Revenue in ITA No.5966/Del/2025 for Assessment Year 2012-13 is also allowed for statistical purposes.