MACHINING & FORGING,DELHI vs. ITO, NFAC, DELHI

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ITA 5753/DEL/2025Status: DisposedITAT Delhi28 January 2026AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Learned First Appellate Authority (NFAC) had dismissed the assessee's appeal in limine, observing that the appeal was not liable to be admitted because the appellant had not filed a return of income and had not paid an amount equal to the advance tax payable. The Tribunal, however, noted that the assessee's case could not be finalized due to the lack of submissions from the assessee. To prevent a miscarriage of justice, the Bench decided to grant the assessee an opportunity of being heard. Consequently, the matter was remitted back to the file of the Learned First Appellate Authority to adjudicate the matter afresh. The NFAC was directed to grant an opportunity of being heard to the assessee and consider the evidence on record or any other evidence the assessee might file. The Tribunal also clarified that if the assessee did not cooperate, the NFAC could proceed to finalize the matter in accordance with the law. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Machining & Forging, is in appeal against the order dated 23.07.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi. This order arose from the Assessing Officer's order dated 16.03.2022 under Section 147 read with Section 144 of the Income Tax Act, 1961, for Assessment Year 2016-17. The NFAC dismissed the assessee's appeal in limine. The reason for dismissal was that the assessee had not filed a return of income and had not paid an amount equal to the advance tax payable. The assessee was represented by Shri Neeraj Jain, and the Revenue by Shri Mahesh Kumar, Sr. DR. The appeal was heard on 13.01.2026 and pronounced on 28.01.2026.

What were the issues?

1. Whether the Learned First Appellate Authority was justified in dismissing the assessee's appeal in limine on the grounds of non-filing of return of income and non-payment of advance tax. Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the Tribunal. However, the Tribunal's decision to remit the matter suggests that the assessee may have argued for an opportunity to be heard and to present their case. Revenue's Contention: The judgment does not record any specific contentions made by the Revenue before the Tribunal. The NFAC's order, which is under challenge, dismissed the appeal in limine based on the assessee's failure to file a return and pay advance tax.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH G: NEW DELHI

Before: Ms. MADHUMITA ROY & SHRI NAVEEN CHANDRA

O R D E R

PER Ms. MADHUMITA ROY, JM:

1.

The instant appeal, preferred by the assessee, is directed against the order dated 23.07.2025 [DIN & Order No. ITBA/NFAC/S/250/2025-26/1078818325(1)], passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 16.03.2022 passed by the Assessing Officer under Section 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for Assessment Year 2016-17.

2.

Heard the submissions made on behalf of the respective parties. In this particular case the Ld. CIT(A) has dismissed the assessee’s appeal in limine, inter alia, by observing as under:

Since the appellant had not filed return of income as well as not paid an amount equal to the amount of advance tax which was payable by it, present appeal is not liable to be admitted. The appeal is infructuous and is, therefore, dismissed.”

3.

However, it is also evident from such order of the Ld. CIT(A) that the assessee’s case could not be finalized on the submission required to be given by the assessee in support of his case. Hence, in order to prevent the miscarriage of justice this Bench deems it fit and proper to grant an opportunity of being heard to the assessee and hence the matter is remitted back to the file of the Learned First Appellate Authority to adjudicate the matter afresh upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld. First Appellate Authority, the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.

4.

In the result, assessee’s appeal is allowed for statistical purposes.

Order pronounced in open court on 28.01.2026.

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