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Judgment
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 21.04.2025 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.NFAC/2021-22/10414497 arising out of the appeal before it against the order dated 27.02.2024 passed u/s 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward 2(1), Moradabad (hereinafter referred to as the Ld. AO).
On hearing both the sides, we find that the assessment order was passed u/s 144 of the Act on the basis that the assessee has failed to explain the payments made to non-GST entities and there was certain mismatch. As before the ld.CIT(A) also the assessee failed to appear, the NFAC entering into the merits, has dismissed the appeal on the basis that not even a single document is filed to substantiate the claim made in the grounds. The ld. AR has demonstrated that all the expenditures are duly substantiated by bills and are on year to year basis.
In the light of the aforesaid, as the facts need verification, we consider it an appropriate case to set aside the issues on merits to the files of the AO for deciding afresh after giving an opportunity of hearing to the assesee. The appeal is allowed for statistical purposes.