Guneet Kaur Chadha Vs ITO (ITAT Delhi)
Delhi ITAT Quashes Ex-parte NFAC Order for Breach of Natural Justice Where Portal Blockage & Medical Grounds Prevented Reply
Less Than 24 Hours to Reply & Portal Blocked: ITAT Calls It Gross Injustice- When Portal Shuts, Natural Justice Opens: Delhi ITAT Orders Fresh Assessment- Medical Emergency & Technical Lockout Ignored—NFAC Order Set Aside- Faceless Doesn’t Mean Heartless: Assessment Remanded for Fair Hearing
Delhi ITAT ‘C’ Bench in Mrs. Guneet Kaur Chadha Vs. ITO [ITA No. 3005/Del/2025, AY 2020-21, order pronounced on 12.11.2025] held that assessment as well as appellate order could not be sustained where Assessee was denied effective opportunity to respond due to unreasonable timelines and technical blockage on portal. AO proposed disallowance of deduction u/s 57(iii) of ₹55,00,216 by issuing draft show-cause notice granting less than 24 hours for response. Assessee sought adjournment on medical grounds with supporting certificate, which was ignored, and thereafter Assessee’s portal remained blocked for several months, disabling submission of replies. Even subsequent replies sent by email and grievance lodged on portal were not considered while framing assessment u/s 143(3). Tribunal observed that Assessee was prevented by sufficient cause from filing reply and that CIT(A)/NFAC failed to even comment on admission of additional evidence, resulting in clear violation of principles of natural justice. Holding that additional evidences went to root of matter, Tribunal restored entire issue to AO for de-novo adjudication with direction to consider all evidences and grant reasonable opportunity. Appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The appeal in ITA No. 3005/Del/2025 for AY 2020-21, arises out of the order of the ld National Faceless Appeal Centre (NFAC) [hereinafter referred to as ‘ld. NFAC’, in short] in Appeal No. ITBA/NFAC/S/250/2024- 25/10747833327(1) dated 20.03.2025 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 13.09.2022 by the Assessing Officer, ITO, Ward-12(2), Delhi (hereinafter referred to as ‘ld. AO’).
