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Judgment
PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 15-12-2025 pertaining to A.Y. 2016-17. arising out the assessment order dated 19-03-2025 u/s.147 r.w.s. 144/144B of the Income-tax Act, 1961, (in short ‘the Act’).
The brief facts of the case are that the assessee is a private limited company engaged in the business of manufacture of electrical wires, cables switches and allied items having its manufacturing unit at SIDCUL, Haridwar a notified backward area and regularly assessed Tax. The assessee filed its return of income on 17-10-2016 declaring a total income of Rs.68,70,00/-. The assessment was originally completed under section 143(3) of the Act on 14-09-2018 at the returned income. Subsequently, the Ld. Pr. CIT invoked revisionary jurisdiction under section 263 of the Act and set aside the assessment directing the Assessing Officer to make a fresh assessment after verification on limited issues. The assessing officer completed the assessment after making the additions on various heads.
Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. NFAC who vide his order dated 15-12-2025 dismissed the appeal. The Ld. CIT(A) has observed in his order as under:
2.1it is found that assessee has total liability against trade payable to the tune of RS.17,84,26,628/-. Assessee has not furnished requisite complete details including confirmation from the party vide notice issued dated 04-03-2022. Hence 10% i.e. 1,78,42,622/- of total liability is added back u/s 41(1) of the Act, on ad-hoc basis as liability is no longer exists also short provision of Rs.22,00,000/- is disallowed as the same is not ascertained liability.
The addition of Trade payable of Rs. 1,78,42,662/- u/s 41(1) and addition of short provision of Rs.22,00,000/- as unascertained liability are confirmed.
3.In the result the appeal filed by the assessee is dismissed.
Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal.
The Ld. AR of the assessee submitted that the appeal was dismissed without adjudicating the grounds on merits. The Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. The appeal was rightly rejected by the Ld. NFAC.
We have heard the parties and perused the material available on record. It is evident from the order that the appeal was dismissed by non-speaking order without adjudicating the grounds of the appeal.
Since in the instant case the appeal was decided by non-speaking therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. NFAC with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. NFAC and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.