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Facts
The assessee appealed against an addition made under Section 68 of the Income-tax Act, 1961. The CIT(A)/NFAC had upheld the addition, noting that the assessee failed to submit a rejoinder to the Assessing Officer's remand report during the faceless assessment proceedings.
Held
The tribunal condoned an 18-day delay in filing the appeal and restored the case to the CIT(A)/NFAC for fresh adjudication. It acknowledged potential communication gaps in faceless hearings and directed the assessee to present their case with three effective opportunities.
Key Issues
The key legal issue was the validity of an addition made under Section 68 due to the assessee's failure to respond to a remand report in a faceless assessment, raising concerns about communication gaps.
Sections Cited
Section 68, Section 143(3)
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Income Tax Appellate Tribunal, DEHRADUN “DB” BENCH, DEHRADUN
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
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/250/2024-25/1074296889(1), dated 10.03.2025, involving proceedings under sections 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
For the reasons stated in the assessee’s condonation petition attributing delay for 18 days to the circumstances beyond its control, we quote Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC) to condone the delay.
Coming to the assessee’s identical sole substantive ground raised herein directed against both the learned lower authorities’ action, inter alia, making section 68 addition(s) in their respective findings, we note from a perusal of the case records at page 41 para 7.8.4 that he had been requested to submit the rejoinder to the Assessing Officer’s remand report coming on 18.07.2024 which remained uncompiled with at his behest.
4. That being the case, the Revenue could hardly dispute that possibility of communication gaps in such an instance involving a newly introduced faceless hearing could not be altogether denied. We thus deem it 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 subject to a rider that the taxpayer shall plead and prove the case at his own risk
2 | P a g e and responsibility, in consequential proceedings. Ordered accordingly. 8. This assessee’s appeal is allowed for statistical purposes. Order pronounced in the open court on 13th January, 2026 Sd/- Sd/- (MANISH AGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19th January, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi
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