SUNDER LAL,NEW DELHI vs. INCOME TAX OFFICER WARD 68(8), NEW DELHI

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ITA 119/DEL/2026Status: DisposedITAT Delhi09 February 2026AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal acknowledged the possibility of communication gaps, especially with the newly introduced virtual hearing mechanism. Considering the larger interest of justice, the Tribunal deemed it appropriate to restore the assessee's appeal back to the Assessing Officer for fresh adjudication. The Assessing Officer is directed to undertake the adjudication within three effective opportunities of hearing, with the proceedings being at the appellant's risk and responsibility. The Tribunal allowed the appeal for statistical purposes. No specific findings on the merits of the additions were made as the matter was remanded.

What were the facts?

The assessee, Sh. Sunder Lal, has filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, for Assessment Year 2012-13. The appeal challenges the order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, dated 28.12.2023. This order was passed pursuant to proceedings under section 147 read with section 144 of the Income-tax Act, 1961. The assessee's counsel submitted that due to communication gaps, the assessee was unable to present all relevant facts during the lower appellate proceedings. The Revenue supported the lower authority's decision.

What were the issues?

1. Whether the ITAT should restore the matter to the Assessing Officer for fresh adjudication, considering the assessee's claim of communication gaps during the lower appellate proceedings? Assessee's Contention: The assessee argued that due to communication gaps at various levels, they could not appear and present all relevant facts before the lower appellate authority. Therefore, the matter should be restored back to the Assessing Officer for fresh adjudication. Revenue's Contention: The Revenue vehemently supported the action of the learned lower authority and argued that the additions made were on merits. The Revenue did not rely on any specific authorities, circulars, or precedents in the provided text.

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: 09.02.2026Pronounced: 09.02.2026

Date of hearing 09.02.2026 Date of pronouncement 09.02.2026 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/250/2023-24/1059165095(1), dated 28.12.2023 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

2.

Learned counsel submits that on account of communication gaps at various levels, the assessee could not appear to plead and prove all the relevant facts in the lower appellate proceedings; and; therefore, the matter may be restored back to the Assessing Officer. The Revenue vehemently supports the learned lower authority’s action making the addition(s) herein on merits.

3.

Be that as it may, the fact remains that possibility of some communication gaps at various levels in such an instance of the newly introduced virtual hearing mechanism could not be altogether ruled out. It is therefore deemed appropriate in the larger interest of justice to restore the assessee’s instant appeal back to the Assessing Officer for his afresh appropriate adjudication, within three effective opportunities of hearing at the appellant’s risk and responsibility, in consequential proceedings. Ordered accordingly.

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