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Facts
The assessee's appeal for AY 2017-18 arose against the order of the CIT(A)/NFAC. The assessee's counsel argued that due to communication gaps, the assessee could not present all relevant facts before the lower appellate proceedings.
Held
The Tribunal acknowledged the possibility of communication gaps, especially with the virtual hearing mechanism, and deemed it appropriate to restore the appeal to the CIT(A)/NFAC for fresh adjudication. The Tribunal also directed that the assessee be assessed under normal provisions concerning Section 115BBE, citing a previous ruling.
Key Issues
Whether the appeal should be restored to the CIT(A)/NFAC for fresh adjudication due to communication gaps. Applicability of Section 115BBE for assessment year 2017-18.
Sections Cited
1473(3), 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
DIN & Order No: ITBA/NFAC/S/250/2025-26/1076245653(1), dated 16.05.2025 involving proceedings under section 1473(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
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, in the larger interest of justice met in case, the matter be restored back to the CIT(A)/NFAC. The Revenue vehemently supports the learned lower authority’s action making the addition(s) herein on merits.
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 CIT(A)/NFAC for his afresh appropriate adjudication, within three effective opportunities of hearing at the appellant’s risk and responsibility, in consequential proceedings. Ordered accordingly.
4, So far as assessee’s assessment under section 115BBE is concerned, we quote S.M.I.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024 (Madras) that the impugned statutory provision would come into effect on the transaction done on or after 01.04.2017 only. The assessee is accordingly directed to be assessed under the normal provision as per law. 2 | P a g e
This assessee’s appeal is partly allowed.
Order pronounced in the open court on 22nd January, 2026.