Mohini Chandnani Charitable Trust vs Deputy Commissioner Of Income Tax Circle1(1) (Exemption) Delhi

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 08-08-2025 pertaining to A.Y. 2011-12 arising out the penalty order dated 28-03-2019 passed under section 271(1) (c) of the Income -tax Act (in short “the Act”)

The assessee has raised the following grounds in appeal:

The appeal is time barred by 97 days. In the condonation application the assessee stated that the appeal should have filed within 60 days but filed 97 days of delay. The assessee has shown the sufficient cause not to file the appeal within time. We find merit of the contention of the assessee, and condoned the delay in filing the appeal and admit the same for adjudication on merits.

The brief facts of the case are that the assessee filed its return of income for the A.Y.2011-12 declaring income Nil. The case was selected for scrutiny and assessment under section 143(3) of the Act was completed on 29-03-2014 at assessed income of Rs.2,24,93,900/-. The penalty was initiated by the AO under section 271(1) (c) of the Act for furnishing of inaccurate particulars of income. Accordingly, notices under section 271(1) (c) of the Act were issued to the assessee. The assessee did not file any response and the Assessing Officer levied the penalty under section 271(1) (c) of the Act to the tune of Rs.69,50,615/-.

Aggrieved, the order of the ld. Assessing Officer the assessee preferred the appeal before the Ld. NFAC who vide his order dated 08-08-2025 dismissed the appeal for non-prosecution. Being aggrieved the order the assessee is in appeal before us.

The Ld. AR of the assessee submitted that the order was passed without being heard to the assessee. He also submitted that quantum appeal has already been allowed by the Tribunal and restore the matter to the file to the Ld. CIT(A) to decide the matter after allowing adequate opportunity of being heard to the assessee. He prayed that matter be send back to the file to the Ld. CIT(A).

The Ld. DR submitted that the assessee did not file any submissions before the Ld. CIT(A) the appeal was rightly dismissed by the authority.

We have heard the parties and perused the record. Since in the instant case the assessee has failed to file his submission after availing the various opportunities. The NFAC dismissed the appeal for non-prosecution. The appeal should be decided on merit as per the provisions of section 250 of the Act. The appeal was decided for non- prosecution without giving the opportunity of being heard to the assessee. Secondly the quantum appeal has already been allowed and matter was restored to the file of the Ld. CIT(A) with a direction to adjudicate the revised grounds after allowing adequate 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 issue to the file of the Ld. NFAC/CIT(A) 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.