ARCHANA SACHAN,NOIDA vs. ITO, NOIDA

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ITA 8032/DEL/2025Status: DisposedITAT Delhi19 January 2026AY 2020-213 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the possibility of communication gaps at various levels could not be ruled out. In the larger interest of justice, it was deemed appropriate to restore the assessee's appeal back to the CIT(A)/NFAC for fresh adjudication. The CIT(A)/NFAC was directed to provide three effective opportunities of hearing to the appellant. The appeal was allowed for statistical purposes. The specific merits of the additions made under section 147 were not decided by the Tribunal.

What were the facts?

The assessee, Archana Sachan, filed an appeal for Assessment Year 2020-21 against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. This order was passed under section 147 of the Income-tax Act, 1961. The assessee contended that due to communication gaps at various levels, she was unable to present all relevant facts and arguments before the lower appellate authority. The Revenue supported the action of the lower authorities. The Tribunal considered the possibility of communication gaps and the need to ensure justice.

What were the issues?

1. Whether, in the interest of justice, the appeal should be restored to the CIT(A)/NFAC for fresh adjudication, considering the assessee's submission of communication gaps preventing proper pleading of facts. (Mixed question of law and fact, turning on principles of natural justice and procedural fairness). Assessee's contention: The assessee argued that communication gaps prevented her from adequately presenting her case before the CIT(A)/NFAC, and therefore, the matter should be remanded for a fresh hearing to ensure the larger interest of justice is met. Revenue's contention: The Revenue vehemently supported the action of the lower authorities, implying that the additions made were justified on merits and no procedural irregularity warranted a remand.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 19.01.2026Pronounced: 19.01.2026

Date of hearing 19.01.2026 Date of pronouncement 19.01.2026 ORDER This assessee’s appeal for assessment year 2020-21, 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/250/2025-26/1081434721(1), dated 03.10.2025 involving proceedings under section 147 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, larger interest of justice would be met, in case, the matter may be restored back to the CIT(A)/NFAC. The Revenue vehemently support the learned lower authorities action making 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 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.

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