Santosh Arora Vs ITO (ITAT Delhi)
Faceless Hearing Glitch Gets Benefit: ITAT Delhi Restores Ex-Parte 147 Appeal
The Delhi ITAT (SMC), in Santosh Arora v. ITO (ITA No. 7579/Del/2025, AY 2012-13; order dated 24.12.2025), has set aside the ex-parte order passed by the CIT(A)/NFAC in reassessment proceedings u/s 147 r.w.s. 143(3) and restored the matter for fresh adjudication.
The Tribunal noted that the CIT(A) had affirmed the AO’s additions ex-parte, as the Assessee did not file submissions or appear during faceless appellate proceedings. While the Department argued that no explanation or evidence was furnished by the Assessee, it was fairly conceded that communication gaps in the faceless regime cannot be ruled out.
Taking a balanced view, the ITAT held that substantive justice should not suffer merely due to procedural lapses or possible technical glitches in faceless hearings. Accordingly, in the interest of justice, the appeal was remanded back to the CIT(A)/NFAC with a direction to grant three effective opportunities to the Assessee. At the same time, the Tribunal cautioned that the Assessee would be required to plead and prove her case at her own risk and responsibility in the remand proceedings.
The appeal was thus allowed for statistical purposes, keeping all issues open for fresh consideration by the first appellate authority
FULL TEXT OF THE ORDER OF ITAT DELHI
