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Facts
The assessee allegedly did not file an income tax return for the year under consideration despite receiving substantial contractual receipts. The assessee also failed to appear before the AO and subsequently before the NFAC, leading to an addition for undisclosed income. The assessee's counsel attributed the non-compliance to the accountant suffering a heart attack.
Held
The Tribunal held that the facts and circumstances require restoring the issue on merits for consideration by the AO to provide a fresh opportunity of hearing to the assessee. The appeal was allowed for statistical purposes.
Key Issues
Whether the assessee should be given a fresh opportunity to present their case on merits before the AO, considering the circumstances of non-appearance.
Sections Cited
147, 144, 69A
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Income Tax Appellate Tribunal, “C” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI KRINWANT SAHAY
This appeal is preferred by the Assessee against the order dated 23.06.2025 of the National Faceless Appeal Centre (NFAC) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1077505137(1) arising out of the appeal before it against the order dated 26.03.2023 passed u/s 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward-24(1) Delhi (hereinafter referred to as the Ld. AO) for AY: 2018-19.
On hearing both the sides it comes up that allegedly assessee had not filed income tax return for the year under consideration though having received Rs.4,67,89,873/- from various parties in the form of contractual receipts and for which TDS was also deducted. However, assessee failed to appear before the AO and accordingly, the contractual receipts were considered to the undisclosed income and addition under Section 69A of the Act, was made and as the assessee preferred appeal before the Ld. CIT(A) by the impugned order and the NFAC dismissed the appeal but again assessee had failed to appear.
Ld. Counsel appearing for the assessee has submitted that assessee’s accountant who was responsible for making necessary statutory compliance had suffered heart attack and also did not inform the assessee, therefore, the cases could not be represented at appropriate stages. It was submitted that entire sales as well as purchases/expenses are genuine which can be substantiated by evidences and in fact the sales were made to establish Japanese companies.
Thus, the given facts and circumstances the ends of justice require restoring the issue on merits for consideration of the AO.
The appeal of the assessee is allowed for statistical purposes and issue on merits are restored to the files of the Ld. AO to give fresh opportunity of hearing to the assessee and pass order afresh.
The appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 21.11.2025