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Facts
The assessee's appeal for AY 2017-18 arose from an ex-parte order by the CIT(A)/NFAC, which affirmed the AO's additions made under section 144. The assessee did not appear, and the case was proceeded ex-parte.
Held
The Tribunal noted the possibility of communication gaps due to the new faceless hearing system and the assessee's absence. In the interest of justice, the appeal was restored to the CIT(A)/NFAC for a fresh adjudication.
Key Issues
Whether the appeal should be restored to the CIT(A)/NFAC due to potential communication gaps in faceless hearings, allowing the assessee an opportunity to present their case.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
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/250/2024-25/1072781762(1), dated 31.01.2025 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.
It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC in it’s 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.
I have given my thoughtful consideration to the foregoing rival stand and I am 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, I 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 2 | P a g e responsibility, in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes. Order pronounced in the open court on 5th June, 2025 (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 5th June, 2025. RK/-