GRAFAX TEXTILES PRIVATE LIMITED,DELHI vs. INCOME TAX OFFICER, WARD 10(3), DELHI

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ITA 1716/DEL/2026Status: DisposedITAT Delhi10 July 2026AY 2022-233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that when an assessee fails to appear and the assessment is completed under Section 144, it is more judicious to restore the issue to the AO for fresh assessment. This allows the AO to provide a fresh opportunity for hearing.

What were the facts?

The assessee failed to appear before the Assessing Officer (AO) and the CIT(A) during assessment proceedings. The AO completed the assessment under Section 144, and the CIT(A) sustained the additions after examining the merits.

What were the issues?

Whether the CIT(A) should have restored the issue to the AO for fresh assessment when the assessee failed to appear in the proceedings, despite examining the merits.

Which sections of the Income-tax Act were involved?

Section 144,Section 143(2),Section 142(1),Section 251(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA&

For Appellant: Ms. Kashish Harwani, Adv
Hearing: 02.07.2026Pronounced: 10.07.2026

P a g e | 1 ITA No.1716/Del/2026 Grafax Textiles Pvt. Ltd. (AY: 2022-23) IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER

ITA No.1716/Del/2026 (Assessment Year: 2022-23)

Grafax Textiles Pvt. Ltd. Vs. ITO, Ward 10(3) 81,Vigyan Vihar, CR Building Delhi – 110092 Delhi – 110002 स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AACCG7634H Appellant .. Respondent Appellant by : Ms. Kashish Harwani, Adv. Respondent by : Sh. Balkrishan Gopal, Sr. DR Date of Hearing 02.07.2026 Date of Pronouncement 10.07.2026

O R D E R PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 31.12.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1084254935(1) arising out of the assessment order dated 13.03.2024 u/s 144 r.w.s 144B of the

P a g e | 2 ITA No.1716/Del/2026 Grafax Textiles Pvt. Ltd. (AY: 2022-23) Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by NFAC, for AY: 2022-23.

2.

Heard and perused the record. On hearing both sides we find that the assessment was completed u/s 144 of the Act wherein in response to notice u/s 143(2) or 142(1) of the Act assesse has failed to appear and further ld. CIT(A) has also found assesse to be non-compliant as assesse had failed to appear in the proceedings also. However, ld. CIT(A) has also examined the merits of the issue and sustained the additions.

3.

We are of the considered view that once assesse had failed to appear before assessing officer and assessment proceedings were concluded u/s 144 of the Act and at First Appellate stage ld. CIT(A) proceeds to examine the issue on merits, then, more judicious approach would be restore the issue on merits to the files of Assessing Officer by exercising powers vested by the Finance (No.2 Act) 2024, wherein proviso is inserted into Section 251(1)(a) explicitly empowering the ld. CIT(A) to set aside the assessment framed u/s 144 and refer the case back to Assessing Officer for fresh assessment.

5.

In the light of aforesaid we sustain the assessee’s ground No. 2.4 and allow the appeal of the assesse for statistical purposes. The impugned orders

P a g e | 3 ITA No.1716/Del/2026 Grafax Textiles Pvt. Ltd. (AY: 2022-23) are set aside and the issues on merits are restored to ld. AO to give fresh opportunity of hearing and conclude the assessment fresh.

Order pronounced in the open court on 10.07.2026

Sd/- Sd/- (Amitabh Shukla) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 10.07.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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