NFAC dismissed appeal despite part reply filed and further time sought – case remanded

Case was remanded by ITAT as NFAC dismissed appeal despite assessee furnishing part reply and sought further time to make full compliance. 

In a recent judgment, ITAT Pune has remanded the case as NFAC dismissed the appeal without considering that assessee had furnished part reply and sought further time to make full compliance. 

ABCAUS Case Law Citation:
4793 (2025) (10) abcaus.in ITAT

In the instant case, the assessee had challenged the order passed by the CIT(A) / NFAC in dismissing appeal by not considering request for granting more time.

The appellant assessee was an individual and furnished his return of income declaring total income at Rs. Nil. The case of the assessee was selected for scrutiny and notice u/s 142(1) and 143(2) were issued to the assessee along with show cause notice. 

The assessee failed to reply to any of the above notices including show-cause notice and therefore the Assessing Officer completed the assessment u/s 144 r.w.s. 144B of the Act.

Being aggrieved, the assessee furnished first appeal before CIT(A)/NFAC which provided two opportunities of hearing.  On the first date of hearing the assessee sought adjournment and on second date of hearing the assessee furnished part reply and again sought for adjournment. 

Considering the reply of the assessee, CIT(A)/NFAC was of the view that the assessee purposely not appeared before the Assessing Officer and before him also did not produce any evidence in support of his claim and simply relied on some case laws.  Accordingly, CIT(A)/NFAC confirmed the order passed by the Assessing Officer and the appeal filed by the assessee was dismissed.

Before the Tribunal, the assessee submitted that the order passed by CIT(A)/NFAC was unjustified.  It was further submitted that the assessee responded to the second notice and furnished reply in part and sought further time to make full compliance.  However, without considering the request of the assessee appeal was dismissed. 

It was requested that now each and every detail in support of grounds of appeal were available with the assessee and if one opportunity is provided, the assessee was in a position to substantiate the grounds of appeal.

Considering the totality of the facts of the case and in the interest of justice, the Tribunal set-aside the order passed by CIT(A)/NFAC and remanded the matter back to him with a direction to decide the appeal afresh as per fact and law after providing reasonable opportunity of hearing to the assessee.

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