Case Law Details
Machining & Forging Vs ITO (ITAT Delhi)
The Delhi Bench of the ITAT set aside the NFAC order dismissing the assessee’s appeal in limine for AY 2016-17 on the ground that no return of income was filed and advance tax was not paid. The Tribunal observed that such summary dismissal, without examining the assessee’s submissions or evidence, resulted in denial of effective opportunity and could lead to miscarriage of justice.
Holding that the assessee’s case was never adjudicated on merits by the first appellate authority, the ITAT remanded the matter back to the CIT(A) with a direction to decide the appeal afresh after granting proper opportunity of hearing and considering all material on record. The Tribunal clarified that non-cooperation by the assessee would entitle the CIT(A) to proceed in accordance with law.
Accordingly, the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
The instant appeal, preferred by the assessee, is directed against the order dated 23.07.2025 [DIN & Order No. ITBA/NFAC/S/250/2025-26/1078818325(1)], passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 16.03.2022 passed by the Assessing Officer under Section 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for Assessment Year 2016-17.
2. Heard the submissions made on behalf of the respective parties. In this particular case the Ld. CIT(A) has dismissed the assessee’s appeal in limine, inter alia, by observing as under:
“5. Since the appellant had not filed return of income as well as not paid an amount equal to the amount of advance tax which was payable by it, present appeal is not liable to be admitted. The appeal is infructuous and is, therefore, dismissed.”
3. However, it is also evident from such order of the Ld. CIT(A) that the assessee’s case could not be finalized on the submission required to be given by the assessee in support of his case. Hence, in order to prevent the miscarriage of justice this Bench deems it fit and proper to grant an opportunity of being heard to the assessee and hence the matter is remitted back to the file of the Learned First Appellate Authority to adjudicate the matter afresh upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld. First Appellate Authority, the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.
5. In the result, assessee’s appeal is allowed for statistical purposes.
Order pronounced in open court on 28.01.2026.
Author Bio
