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Facts
The assessee filed an appeal against the order of the National Faceless Appeal Centre (NFAC) which confirmed the assessment order passed by the Assessing Officer. The assessee had furnished additional evidences before the NFAC, which were not admitted.
Held
The Tribunal found that the additional evidences were relevant for the adjudication of the disputes. Therefore, the appeal was restored to the NFAC for de novo adjudication, with a direction to admit the additional evidences.
Key Issues
Whether the NFAC erred in not admitting the additional evidences furnished by the assessee, and whether the matter should be remanded for de novo adjudication.
Sections Cited
143(3), 46A, 234A, 234B, 234C, 271AAC
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Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI M. BALAGANESH
O R D E R
PER M. BALAGANESH, AM
The appeal in AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as „ld. NFAC‟, in short] in Appeal No. ITBA/NFAC/S/250/2024- 25/1064875702(1) dated 14.05.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 05.12.2019 by the Assessing Officer, ITO, Ward-19(3), Delhi (hereinafter referred to as „ld. AO‟).
The assessee has raised the following grounds of appeal:-
“1. That on the facts and circumstances of the case, the order passed by the learned CIT (A) is bad both in the eye of law and on the fact.
2. That on the facts and circumstances of the case, the order passed by the learned CIT (A) without giving assessee a proper and adequate opportunity of being heard in which is clear violation of the principle of natural justice and without considering application under rule 46A of the Income Tax Act for filling additional evidence.
3. That on the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the AO action in making assessment at an income of Rs. 6723328 as against income of Rs. 752400 declared by the assessee.
4. That on the facts and circumstances of the case, the order passed by the learned CIT (A) is bad in law in confirming the addition of Rs. 59,70,928/-made by the AO on account of deposits in bank account. 5. That on the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO. 6. That on the facts and circumstances of the case, the order passed by the learned CIT (A) is bad law as the same has been passed without taking the information placed on record. 7. That on facts and in the circumstances of the case and in law, the Learned CIT (A) is confirming in charging interest under Section 234A, 234B, 234C of the Income Tax Act. 8. That on facts and in the circumstances of the case and in law, the Learned CIT (A) is confirming in initiating penalty proceedings and under Section 271AAC of the Income Tax Act. 9. We may be allowed to submit any new additional grounds of appeal, amend or alter any of the grounds of appeal replies, submissions at the time of hearing.”
We have heard the rival submissions and perused the materials available on record. At the outset, on perusal of the order of the learned NFAC, we find that assessee had sought to buttress the additions made by the learned AO in the assessment by furnishing additional evidences. These additional evidences were not admitted by the learned NFAC while disposing of the appeal which eventually led to confirmation of the order of the learned AO. We find that those Page 2 of 4 additional evidences are indeed relevant for the purpose of adjudication of the disputes that were pending before the learned NFAC.Hence, we deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of learned NFAC for de novo adjudication in accordance with law with a direction to admit the additional evidences furnished originally by the assessee. The assessee is also at liberty to furnish fresh evidences and additional grounds, if any, in support of his contentions. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with the learned NFAC for expeditious disposal of this appeal by not taking unwarranted adjournments except due to exceptional or bona fide circumstances. With these directions, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 04/06/2025.