ABDUL WAHID,DELHI vs. COMMISSIONER OF INCOME TAX APPEALS, DELHI

This assessee’s appeal for assessment year 2010-11, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1071424888(1), dated 20.12.2024 involving proceedings under section 154 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC in its lower appellate order has proceeded ex-parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding disallowances/additions herein.

Learned departmental representative vehemently argues during the course of hearing in support of CIT(A)’s finding that the assessee had not filed any explanation or evidence supporting it’s case and therefore, his instant appeal deserves to be dismissed.

We have given our thoughtful consideration to the foregoing rival stands and are of the considered view that since the CIT(A) has proceeded ex-parte against the assessee, possibility of some communication gaps between the taxpayer and the arguing counsel involving the newly introduced system of faceless hearings, could not be altogether ruled out.

Faced with this situation, in the larger interest of justice, we deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication, within three effective opportunities subject to a rider that the taxpayer shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly.