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Facts
The assessee's appeal was dismissed by the FAA due to non-response to hearing notices. The assessee contends they responded to the notices and the FAA erred by referring to a penalty order for a different assessment year and a different assessee.
Held
The Tribunal found that the FAA erred in dismissing the appeal without proper adjudication and by incorrectly referencing a penalty order. The FAA's decision was based on a misapplication of facts and law.
Key Issues
Whether the FAA erred in dismissing the assessee's appeal due to alleged non-response to hearing notices and misapplication of facts by referring to an unrelated penalty order.
Sections Cited
250, 147, 144, 144B, 69A, 115BBE, 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI INTURI RAMA RAO
आदेश/ O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 26.12.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2015-16.
Brief facts of the case are as follows: The assessment was completed u/s.147 r.w.s.144 r.w.s.144B of the Act vide order dated 31.01.2024. In the said assessment order, addition was made with regard to cash deposits made in the bank account amounting to Rs.1,97,27,250/- u/s.69A r.w.s.115BBE of the Act.
Aggrieved by the assessment order dated 31.01.2024, assessee filed appeal before the First Appellate Authority (FAA) with a delay of 550 days (Column No.14 of Form No.35). The FAA dismissed the appeal of the assessee vide impugned order dated 26.12.2025 by stating that assessee did not respond to the hearing notices issued from the office of the FAA.
Aggrieved by the order of FAA, assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that assessee had responded to the hearing notices issued from the office of the FAA. Copy of responses filed by the assessee to the hearing notices issued from the office of FAA are placed on record. Further, the Ld.AR by referring to page 2 of the impugned order submitted that the FAA has erred in dismissing / non-adjudicating the grounds raised by the assessee by wrongly referring to a penalty order dated 27.09.2024 u/s.270A of the Act for the assessment year 2022-23 in 3 -: the case of another assessee’s appeal. In this context, the Ld.AR submitted that there has been total non-application of mind by the FAA and has erred in rejecting the appeal of the assessee.
The Ld.DR was duly heard.
We have heard rival submissions and perused the material on record. The FAA has rejected the appeal of the assessee by observing assessee has not responded to the hearing notices issued from the office of the FAA. The Ld.AR has placed on record the assessee’s response to the hearing notices issued from the office of the FAA. Therefore, the FAA has erred in stating that assessee has not responded to the hearing notices. Moreover, from the impugned order, it is clear that grounds raised before FAA by the assessee has not been adjudicated. The FAA has referred to the order of the AO imposing penalty u/s.270A of the Act for misreporting of income, which is not the issue raised by the assessee before the FAA. The FAA has erred in the impugned order by referring to the assessment year 2022-23 and the order imposing penalty u/s.270A, which does not arise on the facts of the assessee’s case. Therefore, we set aside the order of FAA and restore the matter to the files of the FAA. The FAA is directed to 4 -: adjudicate the issues raised before him after affording reasonable opportunity of hearing to the assessee. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.