GUNEET KAUR CHADHA,DELHI V. ITO WARD-12(2), DELHI

ITA 3005/DEL/2025

AI Insights

The case involves an appeal by Mrs. Guneet Kaur Chadha against the order of the National Faceless Appeal Centre (NFAC) and the subsequent assessment order passed by the Assessing Officer under Section 143(3) of the Income-tax Act, 1961. The primary contention was the violation of the principles of natural justice by the Learned CIT(A) in not admitting additional evidences which were crucial for the adjudication of the dispute. The assessee faced procedural hurdles, including a blocked portal and deactivated submission options, which prevented her from filing necessary replies and documents in a timely manner. The tribunal found these actions by the AO and CIT(A) to be inappropriate and restored the matter to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 825376 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 05-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: TARANDEEP SINGH
• Keywords: Opportunity of being heard; Additional evidence; Principle of natural justice
• Section: 143(3)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 3005/Del/2025 (Assessment Year: 2020-21) Mrs. Guneet Kaur Chadha, House No. 190, Third Floor, Jor Bagh, New Delhi- 110003 Vs. Income Tax Officer, Ward-12(3), Delhi (Appellant) (Respondent) PAN:ACWPC9064A Assessee by : Shri Tarandeep Singh, Adv Shri Sandeep Yadav, Adv Revenue by: Shri Om Prakash, Sr. DR Date of Hearing 12/11/2025 Date of pronouncement 12/11/2025 O R D E R PER M. BALAGANESH, A. M.: 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’). 2. One of the most crucial issue raised by the assessee is challenging the violation of principles of natural justice by the Learned CIT(A) in not admitting the additional evidences. Since this goes to the root of the matter, we deem it fit to address the said issue first. Printed from counselvise.com ITA No. 3005/Del/2025 Mrs. Guneet Kaur Chadha Page | 2 3. We have heard the rival submissions and perused the materials available on record. The assessee is an individual and had filed a return of income for Assessment Year 2020-21 on 27-12-2020 declaring total income of Rs. 23,52,980/-. The ld AO during the course of assessment proceedings issued a show-cause notice containing the draft assessment order dated 21- 03-2022 show-causing the assessee as to why the disallowance of deduction claimed under Section 57(iii) of the Act in the sum of Rs. 55,00,216/- be not made in the assessment. The due date set for compliance to the said show-cause notice was 22-03-2022. The assessee was given less than 24 hours to file her reply in this regard. The assessee filed an adjournment letter dated 5-04-2022 on medical grounds. The copy of medical certificate from a doctor evidencing the ill health of the assessee was also uploaded along with the adjournment letter. After no communication was received from the officer to the adjournment letter filed by the assessee. Thereafter, the portal of the assessee was blocked by the Learned AO between 6-04-2022 to 29-08-2022. Hence, assessee could not file her replies during this period. Further, the option of filing any reply was also closed by the Learned AO in the portal on 5-09-2022. Thereafter, another show-cause notice dated 29-08-2022 was issued by the Learned AO. The assessee was given time till 5-09-2022 to reply to the same. In reply, a letter dated 5-09-2022 was filed by the authorised representative of the assessee seeking a short adjournment as there was bereavement in the family being the death of mother of authorised representative. It was also submitted before the Learned AO that the reply to the show-cause notice would be filed on or before 11-09-2022. The assessee however, filed a detailed reply to the show-cause notice issued by the Learned AO and wanted to upload the reply on 11-09-2022 on the income tax portal, by which time the button for ‘submit response’ to the notice dated 29-08-2022 was deactivated by the Learned AO. Hence, the assessee could not file the Printed from counselvise.com ITA No. 3005/Del/2025 Mrs. Guneet Kaur Chadha Page | 3 requisite details before the Learned AO, which culminated in the framing of assessment order on 13-09-2022 determining the total income of the assessee at Rs. 78,55,096/-. In fact, the assessee also raised a grievance in this regard vide Grievance Acknowledgement No. 8232028 at 6.33 am on 11-09-2022 itself stating that she was not able to upload the reply sought for by the Learned AO. Later, the assessee also had sent a detailed reply to the official email of the Jurisdictional Assessing Officer, Ward 12(1), New Delhi on 11-09-2022 itself. This reply also was not taken into cognizance by the Learned AO while framing the assessment on 13-09-2022. Accordingly, in view of these facts, the assessee had no other option but to file the said reply along with all the supporting documents as additional evidences before the Learned CITA. The order of Learned CITA is even silent about admission of additional evidences filed by the assessee thereby resulting in violation of principles of natural justice. The Learned CIT(A) simply endorsed the views of the Learned AO and dismissed the appeal of the assessee. 4. From the facts narrated herein above, we hold that assessee was prevented from sufficient cause in not filing the reply before the Learned AO and the action of the Learned CIT(A) in not even commenting about the admission of additional evidences is not appreciated. Since the additional evidences filed by the assessee go to the root of the matter and would be relevant and crucial for adjudication of the issue in dispute, we deem it fit and appropriate, in the interest of justice and fair play, to restore this entire appeal to the file of Learned AO for de novo adjudication in accordance with law qua the issue in dispute before us. The Learned AO is hereby directed to consider all the additional evidences filed by the assessee before the Learned CITA. The assessee is also given liberty to furnish fresh evidences, if any, in support of her contentions. Needless to mention that Printed from counselvise.com ITA No. 3005/Del/2025 Mrs. Guneet Kaur Chadha Page | 4 the assessee be given reasonable opportunity of being heard. With these directions, the grounds raised by the assessee are allowed for statistical purposes by restoring to the file of Learned AO. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 12/11/2025. -Sd/- -Sd/- (MADHUMITA ROY) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:31/12/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "