SAVITRI RANI BANSIWAL,DELHI vs. INCOME TAX OFFICER, DELHI

ITA 2133/DEL/2025Status: DisposedITAT Delhi28 May 2025AY 2017-183 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the CIT(A)/NFAC had proceeded ex-parte against the assessee, there was a possibility of communication gaps, especially with the introduction of faceless hearings. In the larger interest of justice, the Tribunal decided to restore the assessee's appeal back to the CIT(A)/NFAC for fresh adjudication. This restoration is subject to three effective opportunities for the assessee to plead and prove their case at their own risk and responsibility. The Tribunal allowed the appeal for statistical purposes.

What were the facts?

The assessee, Savitri Rani Bansiwal, has filed an appeal for Assessment Year 2017-18 against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The NFAC's order, dated 30.01.2024, affirmed the Assessing Officer's disallowances and additions made under section 143(3) of the Income-tax Act, 1961. The assessee did not appear before the Tribunal on the date of hearing, and the case was proceeded ex-parte. The NFAC had also proceeded ex-parte against the assessee in its lower appellate proceedings.

What were the issues?

1. Whether the Tribunal should restore the assessee's appeal to the CIT(A)/NFAC for fresh adjudication, considering the NFAC proceeded ex-parte against the assessee. The assessee did not appear before the Tribunal, thus no arguments were presented on their behalf. The Revenue, represented by Sh. Manoj Kumar, Sr. D.R., did not present any specific arguments on the merits of the case but was present for the hearing. The Tribunal noted that the CIT(A)/NFAC had also proceeded ex-parte against the assessee, leading to the affirmation of the Assessing Officer's actions.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI SATBEER SINGH GODARA

Hearing: 28.05.2025Pronounced: 28.05.2025

Date of hearing 28.05.2025 Date of pronouncement 28.05.2025 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/250/2023-24/1060238142(1), dated 30.01.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Case called twice. None appears at the assessee’s behest. She 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.

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 responsibility, in consequential proceedings. Ordered accordingly.

This assessee’s appeal is allowed for statistical purposes

2 | P a g e Order pronounced in the open court on 28th May, 2025

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