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Facts
The assessee filed an electronic return for AY 2015-16, which was processed. The case was selected for scrutiny, and after issuing notices and receiving submissions, an addition was made under 'Under-casting of Sales'. The assessee appealed to the CIT(Appeals), which partly allowed the appeal. Subsequently, the NFAC passed another order erroneously. The assessee appealed again to the ITAT.
Held
The Tribunal noted that the impugned appellate order from NFAC was a duplication of the earlier order passed by the CIT(Appeals). Due to miscommunication, the NFAC passed the order erroneously. Therefore, the assessment order passed by NFAC was set aside.
Key Issues
Whether the appellate order passed by the NFAC was a duplication of an earlier order, rendering it invalid. Whether the appeal filed by the assessee against the erroneous NFAC order should be dismissed.
Sections Cited
143(2), 142(1)
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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Date of concluding the hearing: April 23, 2025 Date of pronouncing the order: May 30, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals),
Brief facts of the case are that the assessee is an individual, who filed his return of income electronically for the assessment year 2015-16 on 25.09.2015 declaring total income of Rs.9,63,990/-. The return was processed. Thereafter the case was selected for scrutiny under CASS and a notice under section 143(2) dated 19.09.2016 was issued and duly served on the assessee. Subsequently a notice under section 142(10 dated 12.04.2017 was issued and served on the assessee. In response to the said notice, the Authorized Representative of the assessee appeared and filed various details and also documents as called for. After considering the submissions made by the assessee, the assessment was completed by making an addition for an amount of Rs.26,20,268/- and the same was added to the total income of the assessee under the head “Under-casting of Sales” and added back to the total income of the assessee.
On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals) and after considering the submissions made by the assessee, the ld. CIT(Appeals) partly allowed the appeal filed by the assessee vide order dated 15.10.2019 and the same was accepted by the assessee and paid taxes accordingly. Thereafter National Faceless Appeal Centre (NFAC), Delhi also passed one more order erroneously vide order darted 27.03.2024. On being aggrieved, the assessee preferred an appeal before the ITAT.
(A.Y. 2015-2016) Asit Dasgupta 4. I have heard both the sides. At the outset, ld. Counsel for the assessee brought to my notice that the impugned CIT(Appeals)’s order is in duplication of the original order dated 15.10.2019. He further submitted that the assessee preferred an appeal against the assessment order and the ld. CIT(Appeals) has passed the order by partly allowing the assessee’s appeal, but suddenly the assessee received the impugned appellate order vide order dated 27.03.2024, which is not valid in the eyes of law. Since the ld. CIT(Appeals) has disposed of the assessee’s appeal vide order dated 15.10.2019, therefore, the impugned first appellate authority’s order is infructuous and pleaded to set aside the order of ld. CIT(Appeals) dated 27.03.2024.
On the other hand, ld. Departmental Representative submitted that by mistake National Faceless Appeal Centre (NFAC) passed the impugned appellate order and NFAC has not noticed the order passed by the ld. CIT(Appeals) vide order dated 15.10.2019, therefore, the impugned appellate order is in duplication of the original order passed by the ld. CIT(Appeals) dated 15.10.2019.
I have perused the entire record. It is an undisputed fact that the impugned appellate order is duplication of the original order dated 15.10.2019, which was passed by the ld. CIT(Appeals). I am of the view that due to some miscommunication, National Faceless Appeal Centre (NFAC), Delhi passed the impugned assessment order dated 27.03.2024. Therefore, the impugned assessment order is hereby set aside.
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open Court on 30/05/2025.