Koncept Marktrade Private Limited vs Assessment Unit Income Tax Department

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal is preferred by the assessee against the order dated 28.11.2025 of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] passing against the assessment order dated 27.03.2024 for the assessment year 2022-23 u/s 143(3) r.w.s. 144B of the Income Tax Act 1961[hereinafter referred to as “the Act”].

The brief facts of the case are that the assessee filed his return of income for the A.Y.2022-23 on 29-12-2022 declaring total income 35,77,933/-. Notice under section 143(2) of the Act was issued on 02-06-2023 and subsequently notices under sections 142(1) of the Act were issued on various dates. The case of the assessee was selected under CASS for verify the reason that directors in the company are wither directors in a company whose registration has been cancelled by MCA. The assessee did not comply the notices issued by the department. The Assessing Officer completed the assessment exparte and assessed the income of the assessee at Rs. 1,84,68,552/-. Penalty proceedings under section 270 of the Act also initiated against the assessee. Aggrieved the order of the Assessing Officer, the assessee filed the time barred appeal before the Ld. NFAC who vide his order dated 28-11-2025 dismissed the appeal treated as time barred. The Ld. NFAC has observed that the assessee has not been able to demonstrate the sufficient cause existed for non-filing the appeal within due time.

Aggrieved the order of the Ld. NFAC the assessee filed this appeal before the Tribunal.

None is present for assessee. Ld. Sr. DR submitted that no sufficient cause has been shown by the assessee for condone the delay in filling the appeal. He further stated that the appeal was rightly dismissed by the Ld. NFAC.

We have heard the Ld. Sr. Dr and perused the material available on record.

The assessee has filed the application for condonation the delay in filing the appeal. In the application the assessee has stated that the delay occurred due unforeseen circumstances particularly unforeseen health issue of the director Shri Piyush Garg. In the condonation application the assessee has shown the sufficient cause not to file the appeal with in time. The Ld. NFAC should have condoned the delay in filing the appeal and should have heard the appeal on merit because the assessee has shown the sufficient cause not to file the appeal with in time. Thus, keeping in view, the entire aspects of the matter, we condoned the delay in preferring the appeal before the Ld. NFAC having been satisfied with the explanation so rendered by the assessee before the said authority. The order passed by the Ld. NFAC is setting side, the issue to the file is restored before the Ld. NFAC who decide the matter to the file after giving the opportunity of being heard to the assessee. The assessee is directed to co-operate with the appellate authority. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purpose.