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Facts
The assessee filed an appeal against an order of the NFAC for AY 2016-17. The NFAC had dismissed the appeal as infructuous, mistakenly believing it was withdrawn, when in fact a different, pending appeal was withdrawn.
Held
The Tribunal held that the dismissal of the appeal by the first appellate authority was based on a mistaken belief and therefore set aside the order. The case was remanded back to the first appellate authority for a fresh adjudication on merits.
Key Issues
Whether the first appellate authority erred in dismissing the appeal as infructuous due to a mistaken belief regarding the withdrawal of a pending appeal?
Sections Cited
147, 144B, 234A
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, VP & SHRI NARENDRA KUMAR BILLAIYA, AM
O R D E R Per Saktijit Dey, VP:
This is an appeal by the assessee, against order dated 18.10.2024 of National Faceless Appeal Centre (NFAC), Delhi for the assessment year (A.Y.) 2016-17.
We have heard the parties and perused the material on record. It is the say of the assessee that assuming that assessee’s request for withdrawal of another pending appeal is for the present appeal filed before the first appellate authority, the appeal has been dismissed in limine. Thus, learned counsel appearing for the assessee submitted that the matter has to be restored back to the file of the first appellate authority for de novo adjudication on merits. aforesaid submissions of the assessee.
Having heard the parties and perused the materials on record, we find, the present appeal arises out of an appellate order passed by the first appellate authority in an against the assessment order passed u/s. 147 rw.s. 144B of the Income Tax Act, 1961 on 17.09.2021. The appeal was instituted before the first appellate authority on 24.07.2023 and the assigned appeal number was NFAC/2015-16/10264998. It transpires from record, there was another appeal pending before the first appellate authority challenging the levy of interest u/s. 234A of the Act, pertaining to A.Y. 2016- 17, which was registered as appeal no. NFAC/2015-16/10065999. In respect of the said appeal, the assessee furnished letter dated 30.10.2022, requesting for withdrawal of the appeal. Mistakenly assuming that the letter of withdrawal furnished by the assessee is in respect of the appeal instituted on 24.07.2023 the first appellate authority dismissed the appeal as infructuous.
Having considered the facts and materials on record, we are convinced that the impugned order passed by the learned first appellate authority dismissing the appeal filed by the assessee as infructuous is under a mistaken belief, hence, needs to be set aside. Accordingly, we do so. We direct the first appellate authority to decide the appeal of the assessee de novo on merits after providing due and reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purpose.
Order pronounced in the open court on 27.02.2025 Sd/- Sd/- (Narendra Kumar Billaiya) (Saktijit Dey) Accountant Member Vice President Mumbai; Dated : 27.02.2025 Roshani, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT - concerned 5. DR, ITAT, Mumbai 6. Guard File BY ORDER,