AYUSH OUTBOUND TRAVEL PRIVATE LIMITED,VARANASI vs. BHAMBHOO RAM MEENA, CR BUILDING, DELHI

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ITA 2378/DEL/2025Status: DisposedITAT Delhi05 June 2025AY 2017-183 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal acknowledged the possibility of communication gaps at various levels in such instances. In the larger interest of justice, the Tribunal decided to set aside the appeal and restore it to the CIT(A)/NFAC for fresh adjudication. The CIT(A)/NFAC is directed to provide the appellant with three effective opportunities of hearing, at the appellant's risk and responsibility, for consequential proceedings. The appeal is allowed for statistical purposes. No specific amount in dispute was recorded. The Tribunal did not decide the merits of the additions made by the lower authorities.

What were the facts?

The assessee, Ayush Outbound Travel Private Ltd., filed an appeal for Assessment Year 2017-18 against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. This order was passed under section 144 of the Income-tax Act, 1961. The assessee's counsel submitted that due to communication gaps, the assessee was unable to present all relevant facts before the lower appellate authority. The Revenue supported the actions of the lower authorities. The Tribunal considered the possibility of communication gaps and decided to restore the matter to the CIT(A)/NFAC for fresh adjudication.

What were the issues?

1. Whether the CIT(A)/NFAC erred in passing an order under section 144 of the Income-tax Act, 1961, without the assessee being able to fully present its case due to communication gaps? Assessee's contention: The assessee argued that communication gaps prevented it from appearing and proving all relevant facts in the lower appellate proceedings, and therefore, the matter should be restored to the CIT(A)/NFAC. Revenue's contention: The Revenue vehemently supported the action of the lower authorities, asserting the correctness of the additions made on merits.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 05.06.2025Pronounced: 05.06.2025

Date of hearing 05.06.2025 Date of pronouncement 05.06.2025 ORDER This assessee’s appeal for assessment year 2017-18, 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/250/2024-25/1073210756(1), dated 12.02.2025 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Heard both the parties. Case files perused.

3.

Learned counsel submits that on account of communication gaps at various levels, the assessee could not appear to plead and prove all the relevant facts in the lower appellate proceedings, and, therefore, the matter may be restored back to the CIT(A)/NFAC. The Revenue vehemently support the learned lower authorities action making addition(s) herein on merits.

4.

Be that as it may, the fact remains that possibility of some communication gaps at various levels in such an instance could not be altogether ruled out. It is, therefore, deemed appropriate in the larger interest of justice to set aside the assessee’s instant appeal back to the CIT(A)/NFAC for his afresh appropriate adjudication, within three effective opportunities of hearing at the appellant’s risk and responsibility, in consequential proceedings. Ordered accordingly.

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