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Facts
The assessee's appeal for assessment year 2018-19 was against an ex-parte order by the CIT(A)/NFAC, which upheld the Assessing Officer's additions. The tribunal observed a lack of substantive adjudication by the CIT(A)/NFAC.
Held
The tribunal held that the CIT(A)/NFAC proceeded ex-parte and restored the appeal to the CIT(A)/NFAC for fresh adjudication, acknowledging potential communication gaps due to the faceless system. The assessee was directed to plead and prove their case.
Key Issues
Validity of an ex-parte order by the CIT(A)/NFAC without proper adjudication and the procedural fairness of the appellate process under the faceless regime.
Sections Cited
147, 144B, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 28.01.2026 Date of pronouncement 28.01.2026 ORDER This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN & Order No: ITBA/NFAC/S/250/2025-26/1080920346(1), dated 19.09.2025 involving proceedings under section 147 r.w.s. 144B 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’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 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. Manoj Kumar 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 my thoughtful consideration to the foregoing discussion 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 2 | P a g e 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.
The assessee’s appeal is allowed for statistical purposes only.
Order pronounced in the open court on 28th January, 2026.