RICH PAL SINGH,GHAZIABAD vs. INCOME TAX OFFICER, WARD 2(2)(2), GHAZIABAD

ITA 1972/DEL/2025Status: DisposedITAT Delhi26 May 2025AY 2012-20133 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 appeal back to the CIT(A)/NFAC for fresh adjudication. The assessee was granted three effective opportunities to plead and prove their case at their own risk and responsibility. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Sh. Rich Pal Singh, filed an appeal for Assessment Year 2012-13 against an order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. This order, dated 27.01.2025, was passed under Section 144 of the Income-tax Act, 1961, and affirmed the Assessing Officer's disallowances and additions. The assessee did not appear before the Tribunal for the hearing on 26.05.2025, and the case was proceeded with ex-parte. The lower appellate authority, the CIT(A)/NFAC, had also proceeded ex-parte against the assessee.

What were the issues?

1. Whether the Tribunal should restore the appeal to the CIT(A)/NFAC for fresh adjudication, given that the CIT(A)/NFAC had proceeded ex-parte against the assessee. The assessee, who did not appear before the Tribunal, implicitly seeks this relief. The revenue, represented by the Sr. DR, did not present any arguments on this point. The Tribunal considered the possibility of communication gaps due to the newly introduced faceless hearing system.

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: 26.05.2025Pronounced: 26.05.2025

Date of hearing 26.05.2025 Date of pronouncement 26.05.2025 ORDER This assessee’s appeal for assessment year 2012-13, 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/250/2024-25/1072573496(1), dated 27.01.2025 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 according 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 26th May, 2025

Recent GST High Court judgments

Search GST case law →