Rohan Promoters Pvt. Ltd. Vs ITO (ITAT Delhi)
No Hearing, No Penalty: ITAT Revives Accommodation Entry Case- Rule 46A Ignored, Justice Restored: Quantum Sent Back
In Rohan Promoters Pvt. Ltd. Vs. ITO, ITA No.968/Del/2017 (quantum) & ITA No.4849/Del/2019 (penalty), AY 2007-08, order dated 31.12.2025, Delhi ITAT set aside quantum addition & deleted consequential penalty u/s 271(1)(c).
Assessee’s return declaring NIL income was processed u/s 143(1). Based on Investigation Wing information alleging accommodation entries, assessment was reopened u/s 147 & completed u/s 147 r.w.s. 144, making addition of ₹19.28 lakh. CIT(A) dismissed appeal & also rejected admission of additional evidence u/r 46A without adequate reasoning.
Tribunal held that denial of opportunity & mechanical rejection of additional evidence could result in miscarriage of justice. In interest of fairness, ITAT remitted quantum issue back to CIT(A) with direction to admit & examine additional evidence after granting reasonable opportunity to Assessee, with liberty to proceed ex-parte in case of non-cooperation. Since quantum matter was restored, penalty u/s 271(1)(c) could not survive & was deleted. Quantum appeal was allowed for statistical purposes & penalty appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeals, preferred by the assessee, are directed against separate orders passed by the passed by the Commissioner of Income Tax (Appeals)-7, New Delhi dated 09.01.2017 [Appeal No. 640/CIT(A)-7/Del/14-15] and dated 06.05.2019 [Appeal No. 10040/40/CIT(A)-7/Del/18-19)], in proceedings under Section 147/144 and 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), respectively, for the Assessment Year 2007-08. Both the appeals were heard together and are being disposed of by a common order for the sake of convenience.
