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Facts
The appeals were filed against an order of the National Faceless Appeal Centre (NFAC) that confirmed additions made by the Assessing Officer (AO) concerning credit entries in the bank account. The AO had made additions for lack of proper explanation of sources.
Held
The Tribunal found that the NFAC decided the issue ex parte without adjudicating on merits, and similarly, the assessment orders were also framed ex parte. Therefore, in the interest of justice, the appeals were restored to the AO for de novo adjudication.
Key Issues
Whether the addition made by the AO and confirmed by the NFAC regarding credit entries in the bank account for want of proper explanation of sources was justified.
Sections Cited
147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI MAHAVIR SINGH, HON’BLE & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, AM 1. These appeals in 7373 & 7374/Del/2025 for AYs 2015-16 to 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 27.10.2025 against the order of assessment passed u/s 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 15.03.2022 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as ‘ld. AO’). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.
The only identical issue to be decided in all these appeals is as to whether the Learned NFAC was justified in confirming the addition made by the Learned AO in respect of credit entries in the bank account for want of proper explanation of sources in the facts and circumstances of the instant case.
We have heard the rival submissions and perused the materials available on record. On perusal of the order of the Learned National Faceless Appeal Centre (NFAC), we find that the Learned NFAC had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Further we find that even the assessment orders were framed exparte for all the years under consideration. Hence, in the interest of justice and fairplay we deem it fit and appropriate to restore this appeals to the file of Learned AO for de novo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with the Learned AO for expeditious disposal of the set aside assessment proceedings by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 16/02/2026.