Manish Kumar Arora vs ITO Ward 59(3)

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 17-10-2025 arising out the assessment order dated 10-03-2023 u/s 147 r.w.s. 144 of the Income Tax Act 1961 (in short “the Act”) pertaining to A.Y. 2018-19.

The brief facts of the case are that assessee is an individual. As per the information received to the department that the assessee has sold and purchased an immovable property to the tune of Rs.2,95,10.000/-, rental income received from House property of Rs.3,10,000/-, Professional fees receipts of Rs.62,000/- and foreign remittance has been sent Rs.87,50,000/-. The assessee did not file any return of income for the year under consideration. During the course of re-assessment proceedings as well as the proceedings initiated under section 148A(d) of the Act the assessee has not furnished any explanation with regard to the said transaction. Notices under section 142(1) were issued to the assessee. Further notice under section 148 of the act was issued but assessee did not reply. The Assessing Officer completed the assessment and assessed the total income at Rs.1,77,70,400/- of the assessee.

Aggrieved by the order of the Assessing Officer, the assessee preferred the appeal before Ld. NFAC, who vide order dated 17-10-2025 dismissed the appeal without condoning the delay. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the tribunal on the various grounds.

The ld. AR of the assessee submitted that Ld. NFAC dismissed the appeal of the assessee without going the merit of the case. He further submitted that sufficient cause for not filing the appeal within time has been shown by the assessee. He further stated that assessee is NRI residing abroad and had not received the communication during the proceedings. The ld. DR of the Revenue submitted that no sufficient cause has been shown by the assessee. The appeal was rightly dismissed.

We have heard both the parties and perused the material available on record. It is evident from the order of the Ld. NFAC that the application for condonation of delay was dismissed because the assessee has failed to show the sufficient cause. Sufficient cause has shown by the assessee in filing the appeal before the Ld. NFAC, therefore, we condone 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.

Since in the instant case the Ld. NFAC dismissed the appeal without condoning the delay and ld. Assessing Officer passed the ex-parte assessment, 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. Assessing Officer 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. Assessing Officer 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.