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Judgment
PER SUNIL KUMAR SINGH, JM :
This appeal has been filed by the assessee against the impugned order dated 23.1.2026 passed in Appeal No. NFAC/2022-23/10454284 by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “Act”) for the Assessment Year (AY) 2023-24, wherein Ld. CIT(A) has dismissed assessee’s appeal in default.
Against the impugned order, assessee has filed this second appeal on the ground that CIT(A) erred in affirming the additions of Rs. 54,26,200/- made vide exparte impugned order dated 23.01.2025 without affording adequate and effective opportunity of being heard to the assessee thereby violating the principles of natural justice.
Ld. AR for the assessee informed that impugned order has been passed by the Ld. CIT(A), exparte in violation of principles of natural justice. Prayed to set aside the impugned order.
Per contra, Ld. DR submitted that sufficient opportunity of hearing has been afforded by the Ld. CIT(A) but for no avail. Thus, he supported the impugned order.
We have heard both the sides and perused the records. We find that in the instant case, AO has passed the assessment order u/s. 144/144B of the Act. We further note that assessee did not respond to the various notices issued by the Ld. First Appellate Authority, who passed exparte impugned order. The reluctant attitude of the assessee cannot be appreciated. However, in the interest of natural justice and fair play, we deem it just and proper to afford an opportunity to the assessee and thus remit the matter back to the file of the Ld. CIT(A) for adjudication on merits afresh after affording sufficient opportunity of hearing to the assessee. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the Ld. CIT(A) for the expeditious and effective disposal of the appeal. Also, assessee should refrain from seeking any adjournment except for compelling and unavoidable circumstances. Needless to say that the Ld. CIT(A) shall ensure the observance of the principles of natural justice. It is made clear that we have not made any observation in respect of the merits of the case. Accordingly, the appeal is liable to be allowed for statistical purposes.
In the result, the Assessee’s appeal is allowed for statistical purposes.