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Judgment
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 31.12.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1084254935(1) arising out of the assessment order dated 13.03.2024 u/s 144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by NFAC, for AY: 2022-23.
Heard and perused the record. On hearing both sides we find that the assessment was completed u/s 144 of the Act wherein in response to notice u/s 143(2) or 142(1) of the Act assesse has failed to appear and further ld. CIT(A) has also found assesse to be non-compliant as assesse had failed to appear in the proceedings also. However, ld. CIT(A) has also examined the merits of the issue and sustained the additions.
We are of the considered view that once assesse had failed to appear before assessing officer and assessment proceedings were concluded u/s 144 of the Act and at First Appellate stage ld. CIT(A) proceeds to examine the issue on merits, then, more judicious approach would be restore the issue on merits to the files of Assessing Officer by exercising powers vested by the Finance (No.2 Act) 2024, wherein proviso is inserted into Section 251(1)(a) explicitly empowering the ld. CIT(A) to set aside the assessment framed u/s 144 and refer the case back to Assessing Officer for fresh assessment.
In the light of aforesaid we sustain the assessee’s ground No. 2.4 and allow the appeal of the assesse for statistical purposes. The impugned orders are set aside and the issues on merits are restored to ld. AO to give fresh opportunity of hearing and conclude the assessment fresh.