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Facts
The assessee's appeal for AY 2019-20 arose against the CIT(A)/NFAC's order passed ex-parte. The assessee did not appear at the hearing, and the case proceeded ex-parte. The CIT(A) affirmed the Assessing Officer's disallowances/additions.
Held
The Tribunal acknowledged that the ex-parte proceedings and the possibility of communication gaps in faceless hearings could not be ruled out. Therefore, in the interest of justice, the appeal was restored to the CIT(A)/NFAC for fresh adjudication.
Key Issues
Whether the CIT(A)'s ex-parte order, passed without adequate opportunity for the assessee, warrants restoration for a fresh adjudication considering potential communication gaps in faceless hearings.
Sections Cited
144, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member : Asstt. Year : 2019-20 Mandir Shri Sita Ram Ji Maharaj Vs ITO/NFAC Sewa Samiti, Old Sohna Road, Off Delhi Naaz Cinrma, Palwal, Haryana-121102 (APPELLANT) (RESPONDENT) PAN No. AAEAM7719H Assessee by : None Revenue by : Sh. Yogeshwar Sharma, Sr. DR Date of Hearing: 13.05.2025 Date of Pronouncement: 13.05.2025 ORDER
This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1070384247(1) dated 14.11.2024, in proceedings u/s 144 of the Income Tax Act, 1961 (in short “the Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC’s detailed discussion has proceeded ex-parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding disallowances/additions herein. Nor do I find any substantive Mandir Shri Sita Ram Ji Maharaj Sewa Samiti lower appellate adjudication as contemplated u/s 250(6) of the Act requiring the CIT(A)/NFAC to first frame points of determination followed by a detailed discussion thereupon.
Mr. Yogeshwar Sharma 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 and therefore, his instant appeal deserves to be dismissed.
I have given our thoughtful consideration to the foregoing rival stand and are 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.