REDI PORT LIMITED ,MUMBAI vs. NATIONAL FACELESS APPEAL CENTRE (NFAC), DELHI

The grounds of appeal are as under:-

Facts of the case are that the ld.Assessing Officer passed the assessment order u/s 143(3) of the Act in this case, determining total income at Rs 6,39,83,530/-,as against the returned income of Rs 5,55,29,000/-by making various additions and disallowances. The ld.CIT(A) observed that the appeal filed before him by the assessee against the assessment order was delayed by 30 days. He further observed from the Form no.35 that the assessee did not mention such delay. Therefore, applying the provisions of section 249(2) of the Act, he dismissed the appeal in limine without adjudicating the appeal on merits.

Before us, the ld.AR submitted that the assessee filed an application in Form 68 on 15.04.2025, seeking immunity from penalty under section 270AA of the Act. The AO passed an order on 27.05.2025, rejecting the said immunity application. Pursuant to such rejection, the assessee filed an appeal before the ld.CIT(A) on 04.06.2025 against the Page 3 A.Υ. 2023-24 Redi Port Limited assessment order. However, the ld.CIT(A) dismissed the appeal without adjudication on merits, solely on the ground that the appeal was time- barred. It is contented that the second proviso to section 249(2) of the Act provides that the time during which an application under section 270AA of the Act remains pending, shall be excluded while computing the limitation period for filing an appeal.

We find that the ld.CIT(A) dismissed the appeal in limine without even affording any opportunity of hearing to the assessee to explain the alleged delay. Consequently, he failed to adjudicate the issues raised in the grounds of appeal and did not examine the materials available on record. Such dismissal without deciding the appeal on merits is contrary to the principles of natural justice. It is settled law that it is the duty of the appellate authority to dispose of an appeal on merits after considering the material on record, even if the appellant fails to appear.

Considering the entirety of the facts and the circumstances of the case and in the interest of principles of natural justice and fair play, we consider it appropriate to send the entire matter back to the file of the ld.CIT(A) in the light of above discussion, granting opportunity to the assessee to advance the arguments and submissions before him, in Page 4 A.Υ. 2023-24 Redi Port Limited connection with the merits of the case. Accordingly, in the substantial interest of justice, we set aside the appellate order and restore the entire matter back to the ld.CIT(A) for passing the appellate order afresh after allowing adequate opportunity of hearing to the assessee who is also directed to attend the proceedings before him and cooperate in furnishing relevant details etc as sought.

In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 10/11/2025. SANDEEP GOSAIN (न्यायिक सदस्य /JUDICIAL MEMBER) Place: मुंबई/Mumbai दिनांक / Date 10.11.2025 Lubhna Shaikh / Steno PRABHASH SHANKAR (लेखाकार सदस्य/ACCOUNTANT MEMBER) आदेश की प्रतिलिपि अग्रेषित/