MUTHUKRISHNAN,CUDDALORE vs. INCOME TAX OFFICER, CUDDALORE

This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 15.07.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2011-12.

At the very outset, we notice that the First Appellate Authority (FAA) had confirmed the additions made by the AO without taking into record the additional evidences filed during the appellate proceedings. Moreover, we also note that the assessment has been completed on best judgment assessment u/s. 144 r.w.s. 147 of the Act.

The Ld.AR for the assessee submitted that FAA had dismissed the appeal without taking into record the details and documents filed during the appellate proceedings by observing that the assessee has not filed any request to accept the additional evidences under 46A of the Income Tax Rules. The Ld.AR submitted that since the assessee had failed to file petition for admission of additional evidences, the FAA had not considered the details and documents furnished before him. The Ld.AR further submitted that the assessment has also been completed on best judgment basis u/s.144 of the Act. Therefore, it was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case.

The Ld.DR supported the order of the AO and the FAA.

We have heard rival submissions and perused the materials on record. Before the FAA, the assessee has produced certain details and documents but failed to file the petition for admission of additional evidences under Rule 46A of the Income-tax Rules. Therefore, the FAA had dismissed the appeal of the assessee without considering the additional evidences filed before him. Moreover, the proceedings before the AO was ex-parte, since the assessee did not respond to various notices issued. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the AO. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.25,000/- (Rupees twenty five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.25,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.