Goldman Tapes Private Limited Vs ITO (ITAT Mumbai)
Delay Condoned ≠ Merits Heard: ITAT Mumbai Remands Faceless Appeal for Fresh Adjudication
Mumbai ITAT (Bench ‘G’) held that once an appeal is admitted after condonation of delay, the assessee must be given a clear and effective opportunity to argue on merits. The Tribunal noted that in the faceless regime, the assessee had made submissions only on condonation of delay, under a bona fide belief that arguments on merits would be invited thereafter. However, the NFAC proceeded to decide the appeal on merits without granting such opportunity, thereby violating the principles of natural justice.
Holding that condonation of delay cannot substitute a hearing on merits, the ITAT set aside the appellate order and restored the matter to the CIT(A) for de novo adjudication, with a direction to provide due and reasonable opportunity of being heard to the assessee. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. This is an appeal by the assessee against the order dated 27.12.2024, passed by National Faceless Appeal Centre (NFAC for short), Delhi for the assessment year (A.Y.) 2018-19.
2. We have considered rival submissions and perused the materials available on record. The primary grievance of the assessee is on lack of opportunity being granted by the first appellate authority for presenting the case on merits.
