Case Law Details
Tariq Khan Vs NFAC/Assessment Unit Income Tax Department (ITAT Delhi)
Tribunal first condoned delay of 23 days in filing the appeal by applying the liberal principles laid down in Collector Land Acquisition v. Katiji (167 ITR 471) since circumstances causing delay were beyond Assessee’s control.
On merits Tribunal noted that CIT(A)/NFAC had passed the order ex-parte while affirming AO’s additions u/s 147 r.w.s. 144. Tribunal observed that in the faceless regime possibility of communication gaps between Assessee & counsel cannot be ruled out. In the interest of justice Tribunal set aside the ex-parte order & restored the appeal to CIT(A)/NFAC for fresh adjudication with three effective opportunities, clarifying that Assessee shall plead & prove the case at his own risk & responsibility. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal ITA no. 6669/Del/2025 for assessment year 2020-21 arises against CIT(A)/NFAC, Delhi’s order dated 28.07.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1078959665(1), in proceedings u/s 147 r.w.s. 144 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused.
2. It emerges during the course of hearing that there is delay of 23 days in filing the instant appeal. Considering the submissions made by the learned counsel at bar explaining the corresponding circumstances beyond control for delay in filing the instant appeal and to do substantial justice to parties by disposing of the matters on ‘merits’ as envisaged in Collector Land Acquisition v. Mst. Katiji & another (1987) 167 ITR 471 (SC), the tribunal hereby condones the above delay in filing the appeal and proceeds to adjudicate the instant appeal on merits.
3. It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC’s detailed discussion of the lower appellate order has proceeded ex-parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding disallowances/additions herein.
4. Learned DR 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.
5. This tribunal has given thoughtful consideration to the foregoing rival stand and is 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.
6. Faced with this situation, in the larger interest of justice, this tribunal deems 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 own risk and responsibility, in consequential proceedings. Ordered accordingly.
7. This assessee’s appeal is allowed for statistical purposes.
Order pronounced in open court on 27.11.2025.
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