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Judgment
PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal is preferred by the assessee against the order dated 10.12.2025 of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] passing against the assessment order dated 23.03.2025 for the assessment year 2020-21 u/s 147 r.w.s. 144 of the Income Tax Act 1961[hereinafter referred to as “the Act”]
The assessee has raised the ground no. 2 which reads as under:-
2.The Ld. CIT(Appels) has not appreciated that the principals of natural justice were violated as the appellant was not given sufficient or effective opportunity to be heard before forming a conclusion about escapement of income.
The brief facts of the case are that the assessee is an individual engaged in the traditional handicraft business of Karchobi Zardozi embroidery which involves custom hand embroidery work on garments for wedding festival and boutique supplies. For the Assessment Year, 2020-21 the assessee did not file the return of income. Notice under section 148 of the Act was issued on 04-03-2024 and the order u/s 148A(d) of the Act dated 04-03-2024 was passed after taking the prior approval from the competent authority. In the case of assessee information received with the RMS, on sight Portal maintained by the Income Tax Department, under the head made cash deposit amounting to Rs.77,35,800/-. The assessee did not file any submissions before the Assessing Officer and Assessing Officer completed the assessment after making the addition of Rs. 77,35,800/- under section 68 of the Act. Aggrieved the order of the Assessing Officer, the assessee filed the time barred appeal before the Ld. CIT(A) who vide his order dated 10-12-2025 dismissed the appeal treated as time barred. Ld. NFAC has observed that the assessee has failed to explain the sufficient cause for condonation.
Aggrieved the order of the Ld. NFAC the assessee filed this appeal before the Tribunal.
Ld. AR for the assessee submitted that the appeal was dismissed treating time barred by the appellate authority. The assessee has moved the application for condonation of delay of 34 days showing the sufficient cause. He submitted that the appeal be admitted for adjudication on merit and delay be condoned.
Ld. CIT 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 rival contention 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 to the absence of professional guidance and lack of awareness about the legal process involved in filing an appeal. 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.