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Facts
The appeal arises from an order of the National Faceless Appeal Centre (NFAC) which dismissed the assessee's appeal as non-admissible due to a delay of 10 months and 16 days in filing. The assessee's original assessment order was passed under section 143(3) of the Income-tax Act, 1961.
Held
The Tribunal held that the NFAC should have issued a defect notice to the assessee seeking reasons for the delayed filing of the appeal. The NFAC is directed to consider the assessee's reply judiciously and, if the delay is condoned, to decide the other grounds of appeal on merits after providing the assessee a reasonable opportunity of being heard.
Key Issues
Whether the NFAC was justified in dismissing the appeal as non-admissible without issuing a defect notice for the delay in filing.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH “DB”: AGRA
AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 16.10.2023 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 17.12.2020 by the Assessing Officer, ITO, Ward-2(2)(5), Etawah (hereinafter referred to as ‘ld. AO’).
Though the assessee has raised several grounds of appeal before us, the preliminary issue to be decided in this appeal is as to whether the ld NFAC was justified in dismissing the appeal as non-admissible in the facts and circumstances of the instant case.
Radhe Radhe Indian Oil 3. None appeared on behalf of the assessee. We have heard the ld DR and perused the materials available on record. On perusal of the order of the ld NFAC, we find that the ld NFAC had dismissed the appeal as non- admissible by not condoning the delay in filing of appeal before it by 10 months and 16 days. We find that the assessee firm had filed its return of income declaring total income of Rs 3,52,060/- and assessment stood completed u/s 143(3) of the Act on 31/12/2019 determining total income at Rs 2,38,44,130/- after making the following additions:- a) Addition in capital account of Smt Pallavi Agrawal -Rs 2,50,000 b) Addition in capital account of Shri Akhil Agrawal -Rs 11,00,000 c) Unsecured loan from Singh Filling Station - Rs 12,50,000 d) Cash deposit during demonetization period - Rs 2,11,55,560 e) Diesel expenses - Rs 88,570
Admittedly there was a delay in filing of appeal before the ld NFAC by the assessee. The assessee had pleaded before us in the grounds of appeal that no defect notice was issued by the ld NFAC before dismissing the appeal as non-admissible. Hence we direct the ld NFAC to issue a defect notice to the assessee seeking reasons for delayed filing of appeal, consider the reply judiciously in accordance with law. If the delay is decided to be condoned by the ld NFAC, the NFAC should decide the other grounds raised before it on merits. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. With these directions, the grounds raised by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 05/02/2025.