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Facts
The assessee's appeal for AY 2017-18 arose against an order that affirmed the Assessing Officer's disallowances/additions made ex-parte. The learned CIT(A)/NFAC proceeded ex-parte against the assessee, and the Revenue argued that the assessee failed to provide explanations or evidence.
Held
The Tribunal acknowledged the possibility of communication gaps between the taxpayer, auditor, and counsel when proceedings are ex-parte. In the interest of justice, the Tribunal decided to restore the appeal back to the CIT(A) for fresh adjudication.
Key Issues
Whether the ex-parte proceedings by the CIT(A)/NFAC were justified, and if not, whether the appeal should be restored for fresh adjudication.
Sections Cited
144
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
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/250/2025-26/1082290462(1), dated 04.11.2025 involving proceedings under section 144 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC in its detailed discussion has proceeded ex- parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding disallowances/additions herein.
The Revenue during the course of hearing vehemently argues in support of CIT(A)’s finding that the assessee had not filed any explanation or evidence supporting it’s case.
I have given my thoughtful consideration to the foregoing rival stands and is of the considered view that since the CIT(A) has proceeded ex-parte against the assessee, possibility of some communication gaps between the taxpayer, auditor and the arguing counsel in such an instance 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) for her afresh appropriate adjudication, within three effective opportunities subject to a rider that the taxpayer shall plead and prove the cases at his own risk and responsibility, in consequential proceedings. Ordered accordingly.