AI Structured Summary
Not yet generated for this judgment
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 22-12-2025 pertaining to A.Y. 2018-19 arising out the assessment order dated 28-03-2023 u/s.147r.w.s.144B of the Income-tax Act, 1961, (in short ‘the Act’)
The assessee raised the following grounds in the appeal”
1.Learned Commissioner of Income tax (Appeals) (NFAC) has erred on facts and in law in confirming the action of the Assessing Officer in estimating the gross income at 2% of total turnover of Rs.31,86.33.801/- and determining net income at Rs.61,11,179/- without any cogent basis comparable case or material on record to justify such rate.
2.The appellant craves leave to add, alter or amend and / or withdraw any of the above grounds of appeal.
The brief facts of the case are that the assessee is Firm. The assessee did not file the return of income for A.Y.2018-19. Information was available with department that during F.Y. 2017-18 the assessee had receipts amounting to RS.10,91,41,801/-. On the basis of the information available on record case of the assessee was reponed u/s 147 of the Act and notice u/s 148 of the Act was issued to the assessee on 29-03-2022. Statutory notices were issued to the assessee. In the response of the notice the u/s 148 of the Act the assessee filed his return of income. After considering the submission filed by the assessee the Assessing Officer made the additions of Rs.63,72,676/- the 2% estimated of the total turnover of Rs.31,86,33,801/- and assessed the income at Rs. 61,11,179/- after allowing expenses of Rs.2,61,497/-.
Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. NFAC who vide his order dated 22-12-2025 dismissed the appeal. 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 opportunity of being heard was not provided by the lower authorities. The Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the Ld. NFAC. The appeal was rightly rejected by the Ld. NFAC.
We have heard both the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. NFAC, the assessee did not file its submissions, as a result thereof the appeal was dismissed for non-prosecution by the Ld. NFAC.
Since in the instant case the assesse has failed to file its submissions after availing the various opportunities and the Ld. NFAC dismissed the appeal for non-prosecution. However, the appeal should have been decided on merits as per the provisions of the section 250 of the Act. The appeal was decided ex-parte without giving the opportunity of being heard to the assessee. 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 issues 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 issues as per fact and law. The assessee is also directed through this Ld. AR 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.