MADHAVAN NANU PILLAI,KOLHAPUR vs. JOINT COMMISSIONER OF INCOME TAX (OSD), CIRCLE-1, KOLHAPUR, KOLHAPUR

This appeal by the assessee against the order dated 19-05-2023 passed by the National Faceless Appeal Centre (“NFAC”), Delhi for assessment year 2009-10.

The ld. AR filed adjournment application seeking granting adjournment stating that he is unwell advised bed rest by the Doctor enclosing Doctor certificate dated 14-06-2023, but however, it is noticed that the NFAC, Delhi dismissed the grounds raised by the assessee ex- parte. The ld. DR drew our attention at para 1.1 of the impugned order and stated though the notices were issued by the NFAC, Delhi, no compliance was made on behalf of the assessee. He fairly conceded that one more opportunity should be given to the assessee in view of the fact that no assistance of assessee was there before the NFAC, Delhi during First Appellate proceedings. Therefore, the adjournment application filed by the assessee is rejected and we proceed to pass the order with the assistance of ld. DR and perusing the material available on record.

Heard ld. DR and perused the material available on record. We note that the assessee is a proprietor of M/s. Neeta Instruments, engaged in the business of manufacturing of C.I. castings. The assessee filed return of income declaring a total income of Rs.2,39,57,070/-, but however, the AO determined the same at Rs.2,55,21,410/- inter alia making additions on account of disallowance u/s. 40(A)(ia), capital expenditure, disallowance u/s. 36(1)(iii), personal expenses and income from other sources vide its order dated 30-12-2011 passed u/s. 143(3) of the Act. Aggrieved by the said assessment order, the assessee preferred an appeal before the NFAC, Delhi.

On perusal of para 1.1 of the impugned order, it is observed that the NFAC, Delhi given seven notices requesting the assessee for compliance, but however, it is noted no reply from the assessee in response to the said notices. As discussed above, the additions made by the AO requires assistance of the assessee in support of grounds raised before the NFAC, Delhi. In view of such circumstances, having no assistance before the NFAC, Delhi, in the interest of justice, we deem it proper to remand the matter to the file of NFAC, Delhi for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes.