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Facts
The assessee's appeal for Assessment Year 2011-12 arises against the order of the CIT(A)/NFAC, which proceeded ex-parte. The assessee's representative did not appear for the hearing despite being called twice. The lower appellate authority's decision was based on an ex-parte assessment.
Held
The Tribunal noted that the CIT(A)/NFAC's discussion proceeded ex-parte without proper framing of points of determination. Considering the possibility of communication gaps due to the newly introduced faceless hearing system, the Tribunal restored the appeal back to the CIT(A)/NFAC for fresh adjudication.
Key Issues
Whether the lower appellate authority correctly proceeded ex-parte and if the adjudication was proper without framing points of determination. Whether to restore the appeal for fresh adjudication due to potential communication gaps in faceless hearings.
Sections Cited
144, 250(6)
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1056755923(1) dated 04.10.2023, in proceedings u/s 144 of the Income Tax Act, 1961 (in short “the Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
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 ./2023 Salim Shah Ali Officer’s action making the corresponding disallowances/additions herein. Nor do we 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.
5. Mr. Srivastava 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.
We have given our thoughtful consideration to the foregoing rival stand and are of the considered view 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, we deem it appropriate to restore the assessee’s instant appeal back 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
This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 03/02/2025.