MANMOHAN SINGH,DELHI vs. CIRCLE 43(1), DELHI

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ITA 1037/DEL/2025Status: DisposedITAT Delhi14 May 2025AY 2011-20123 pages
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 between the taxpayer and their counsel concerning the faceless hearing system. In the larger interest of justice, the Tribunal deemed it appropriate to restore the appeal back to the CIT(A)/NFAC for fresh adjudication. The assessee was granted three effective opportunities to present their case, with the rider that they would 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. Manmohan Singh, filed an appeal for Assessment Year 2011-12 against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. This order, dated 06.12.2024, was passed under Section 147 read with Section 144 of the Income-tax Act, 1961. The NFAC's order affirmed the Assessing Officer's disallowances and additions. The assessee did not appear before the Tribunal for the hearing on 14.05.2025. The NFAC had also proceeded ex-parte against the assessee in its appellate proceedings.

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 proceeded ex-parte against the assessee. The assessee did not appear before the ITAT. The revenue, represented by the Sr. DR, did not present any arguments on this procedural point, but implicitly supported the existing order by not arguing for a different outcome. The Tribunal noted the possibility of communication gaps due to the new faceless system.

Which sections of the Income-tax Act were involved?

Section 147,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: 14.05.2025Pronounced: 14.05.2025

ORDER This assessee’s appeal for assessment year 2011-12, 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/250/2024-25/1070979597(1), dated 06.12.2024 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.

3.

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

4.

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.

5.

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.

6.

This assessee’s appeal is allowed for statistical purposes. 2 | P a g e Order pronounced in the open court on 14th May, 2025

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