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Facts
The assessee's appeal arose from an order of the NFAC which dismissed the appeal against an assessment order passed under section 144 read with section 144B of the Income Tax Act, 1961. The assessment order was based on the failure of the assessee to explain payments to non-GST entities and certain mismatches.
Held
The Tribunal found that the assessee failed to appear before the Ld. CIT(A) and the NFAC dismissed the appeal for lack of substantiating documents. However, the Ld. AR demonstrated that expenditures were duly substantiated by bills. The Tribunal set aside the issues on merits to the AO for fresh decision after giving an opportunity of hearing to the assessee.
Key Issues
Whether the NFAC was justified in dismissing the appeal without proper verification of documents. Whether the assessee should be given an opportunity of hearing before the AO.
Sections Cited
144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES: G : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI NAVEEN CHANDRA
Assessment Year: 2022-23 Mr. Iqbal Haseeb, Vs ITO, Prop. M/s IH Exports Inc., Ward 2(1), 73/G 16 Tar Wali Kothi, Moradabad (UP). Peerzada Road, Katghar, Moradabad – 244 001, Uttar Pradesh. PAN: ABIPH2264E (Appellants) (Respondents) Assessee by : Shri Mayank Patwari & Shri Akash Ojha, Advocates Revenue by : Shri Mahesh Kumar, CIT-DR Date of Hearing : 07.10.2025 Date of Pronouncement : 29.10.2025 ORDER
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 21.04.2025 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.NFAC/2021-22/10414497 arising out of the appeal before it against the order dated 27.02.2024 passed u/s 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward 2(1), Moradabad (hereinafter referred to as the Ld. AO).
On hearing both the sides, we find that the assessment order was passed u/s 144 of the Act on the basis that the assessee has failed to explain the payments made to non-GST entities and there was certain mismatch. As before the ld.CIT(A) also the assessee failed to appear, the NFAC entering into the merits, has dismissed the appeal on the basis that not even a single document is filed to substantiate the claim made in the grounds. The ld. AR has demonstrated that all the expenditures are duly substantiated by bills and are on year to year basis.
In the light of the aforesaid, as the facts need verification, we consider it an appropriate case to set aside the issues on merits to the files of the AO for deciding afresh after giving an opportunity of hearing to the assesee. The appeal is allowed for statistical purposes. Order pronounced in the open court on 29.10.2025. Sd/- Sd/- (NAVEEN CHANDRA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th October, 2025. dk