TaxTMI 
TaxTMI 
2026 (3) TMI 805
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....ssessee has taken the following grounds of appeal: "1. The Ld. CIT (Appeals)-12, Ahmedabad has grossly erred in law and in facts in dismissing the appeal ex-parte without affording reasonable opportunity of being heard. The appellant is connected with Darshanam Group, where in search operation was carried out by the Income Tax Department on 24,02.2022. In consequence to search operation, the re-assessment proceedings were commenced u/s. 148 of the I.T Act in number of group cases. Accordingly, all the staff of the Darshanam Group and counsel of the Darshanam Group were preoccupied with the analysing the voluminous seized documents and compiling the details / information for completion of assessment proceedings of various group case....
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.... assessment records and noticed that the assessee had shown interest income of Rs.1,12,58,938/- under the head "Income from Other Sources" and had claimed deduction of Rs.58,51,028/- under section 57 of the Act towards interest expenditure comprising interest paid to partnership firms, interest paid on mortgage loans and interest paid to other parties. The Pr. CIT observed that the Assessing Officer had not carried out necessary enquiries to verify whether such interest expenditure had been incurred wholly and exclusively for the purpose of earning the interest income as required under section 57(iii) of the Act. Accordingly, the Pr. CIT invoked the provisions of section 263 of the Act and set aside the original assessment order with a dire....
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....d 272(1)(d) of the Act. 6. The learned CIT(Appeals), however, observed that multiple notices of hearing under section 250 of the Act were issued to the assessee during the course of appellate proceedings through the ITBA portal and adequate opportunities were provided to furnish submissions and supporting evidences. The CIT(Appeals) noted that on some occasions adjournments were sought by the assessee whereas on several other occasions there was complete non-compliance. According to the learned CIT(Appeals), despite repeated opportunities, the assessee failed to place on record any written submissions or documentary evidence to substantiate the grounds of appeal. The learned CIT(Appeals) placed reliance on several judicial pronouncements....
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....e before the CIT(Appeals). It was therefore requested that one more opportunity may be granted to the assessee to present the case on merits. 9. After considering the submissions and the facts of the case, we are of the view that although the assessee did not properly prosecute the appeal before the CIT(Appeals), the issues involved in the present appeal require adjudication on merits after considering the evidences relating to the claim of interest expenditure under section 57(iii) of the Act. The principles of natural justice require that the assessee should be afforded one more opportunity to substantiate the claim. At the same time, it is evident that the non-prosecution of the appeal before the CIT(Appeals) has been attributable to ....