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Facts
The assessee's appeal was filed against the order of the National Faceless Appeal Centre (NFAC) for AY 2018-19. There was a delay in filing the appeal, which was condoned by the Tribunal. The core issue pertained to cash deposits in the assessee's bank account, claimed to be from mobile phone sales.
Held
The Tribunal condoned the delay and admitted the appeal. While acknowledging the assessee's claim about sales and a raised legal issue not addressed by the lower authorities, the Tribunal noted the assessee's failure to appear and provide factual details. Consequently, the matter was set aside and restored to the Assessing Officer for a fresh assessment after providing the assessee an opportunity to be heard.
Key Issues
Whether the cash deposits in the bank account were from legitimate sales and the proper adjudication of the legal issue raised by the assessee, given the assessee's non-appearance before lower authorities.
Sections Cited
147, 144, 144B
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Income Tax Appellate Tribunal, “A” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
This appeal preferred by the Assessee against the order dated 03.10.2024 of Ld. National Faceless Appeal Centre (NFAC) (hereinafter
P a g e | Raman Garg (AY: 2018-19) referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No : ITBA/NFAC/S/250/2024-25/1069351581(1) arising out of the assessment order dated 21.03.2023 u/s 147 r.w.s 144 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by Assessment Unit of Income-tax Departmentfor AY: 2018-19.
On hearing both sides we find that there is delay in filing of the appeal for which an application for condonation of delay has been filed supported with an affidavit. The delay being not of a substantive period stand condoned.
Appeal is admitted for hearing.
Further, it comes up that assessee had failed to appear before both the tax authorities and the issue involved is of cash deposited in the bank account for which assessee claims that the same was by way of sales of mobile phones and mobile vouchers only. It comes up that assessee has raised legal issue which has not been entered into by the ld. CIT(A).
However, as the assessee has failed to appear and give a factual detail of the issue which requires verification. We are inclined to allow the appeal for statistical purpose and set aside the impugned orders. The issue of merits
P a g e | Raman Garg (AY: 2018-19) as well as law is restored to the files of ld. AO to give opportunity to the assessee and pass order afresh.
The appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11.02.2026
Sd/- Sd/- (Manish Agarwal) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 11.02.2026 Rohit, Sr. PS