Puneet Nanda vs ITO, Ward-1

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 17.03.2025 of the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No.: ITBA/NFAC/S/250/2024-25/1074569833(1) arising out of the order dated 09.05.2023 u/s 147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessment Unit, Income Tax Department, for AY: 2013-14.

On hearing both sides we find that the assessment order was pssed u/s 147 r.w.s 144 of the Act wherein assessing officer has made an addition on account of credit entries in account allegedly maintained by assessee with HDFC Bank Muzaffarnagar assessee proprietor of M/s Gobind Trading Company and is maintaining this account with HDFC Bank Muzaffarnagar. Ld. counsel has submitted that in the return filed by the firm the credit entries have been duly reported as income. We find that as assessee approached ld. CIT(A) the appeal of assessee was dismissed for delay in filing the appeal by 75 days. Thereafter ld. CIT(A) has also made observations on merits. Something which is not under law as if the appeal was dismissed on ground of delay that at all merits would be discussed. We find that in fact assessee had failed to appear before ld. CIT(A) and observations were also made by ld. CIT(A) on the fact that in spite of notices assessee is not appearing.

In the light of aforesaid considering that the assessment order was passed u/s 144 of the Act and ld. Counsel of the assessee has submitted that income has been reported in the hands of firm. We consider it appropriate case to set aside the impugned order and restore the issue on merits to the files of the ld. Assessing Officer to give fresh opportunity of hearing to the assessee and pass assessment order afresh.