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Judgment
PER SUDHIR KUMAR, JUDICIAL MEMBER:
These are cross appeals filed by the assessee as well as revenue against the order of Ld. CIT-Appeals, National Faceless Appeal Centre dated 13-11-2025 for the Assessment Year 2023-24.
At the time of hearing, Ld. AR of the assessee submitted that AO has passed the exparte order u/s. 144 of the Act on account of non-prosecution and CIT(A) has upheld the exparte assessment order u/s. 144 of the Act by partly allowing the appeal of the assessee. However, in cross appeal, it was the contention of the Ld. DR that whether the Ld. CIT(A) is correct when he himself recorded the assessee’s failure to substantiate the transactions with any documentary evidence in the impugned order.
We have heard the rival contentions and perused the material available on record. It is an admitted fact that AO has passed the exparte order on account of non-prosecution on the part of the assessee. Since in the instant case the assesse has failed to file its submissions etc. after granting various opportunities and Ld. CIT(A) has partly allowed the appeal of the assessee by estimating the profit earned by the assessee from business @ 8% instead of 10% as determined by the AO. 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 issues raised in the assessee’s appeal to the file of the AO with a direction to decide the same afresh, after giving adequate opportunity of being heard to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to fully cooperate with the AO during the proceedings and produce all the necessary documents, evidences, etc. to canvass its case. Resultantly, the appeal of the assessee is allowed for statistical purposes.
As regards, Revenue’s appeal is concerned, since we have already remit back the issues to the file of the AO in assessee’s appeal, as aforesaid, the issues involved in the revenue’s appeal are also remit back to the AO for its fresh consideration.
To sum up: both the cross appeals filed by the Assessee as well as Revenue stand allowed for statistical purposes in the aforesaid manner.