NAVEEN TIMBER PVT. LTD.,NEW DELHI V. DCIT, CIRCLE, KARNAL

ITA 3569/DEL/2024

AI Insights

The case involves M/s Naveen Timber Pvt. Ltd., which appealed against the order of the CIT(A)/NFAC, Delhi, concerning the Assessment Year 2016-17. The appeal arose from proceedings under section 143(3) of the Income Tax Act, 1961, where the CIT(A) had affirmed the Assessing Officer's disallowances/additions ex-parte. The Tribunal noted the absence of the assessee's representation and proceeded ex-parte but recognized potential communication gaps due to the faceless hearing system. The Tribunal's decision to remand the case back to the CIT(A) was influenced by the need for a thorough and fair reassessment of the issues raised.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826791 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2016-2017
• Appeal Filed On: 06-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ANKUSH KALRA
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Amitabh Shukla, Accountant Member ITA No. 3569/Del/2024 : Asstt. Year: 2016-17 M/s Naveen Timber Pvt. Ltd., C/o R. C. Rai & Associates, 203, Akashdeep Building, 26A, Barakhamba Road, New Delhi-110001 Vs DCIT, Circle, Karnal, Haryana (APPELLANT) (RESPONDENT) PAN No. AACCN6399L Assessee by : None Revenue by : Ms. Ankush Kalra, Sr. DR Date of Hearing: 05.01.2026 Date of Pronouncement: 05.01.2026 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2016-17 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1065533916(1) dated 11.06.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”). 2. Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte. 3. It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC’s detailed discussion has proceeded ex-parte against the assessee thereby affirming the Assessing Printed from counselvise.com ITA No. 3569/Del/2024 Naveen Timber Pvt. Ltd. 2 Officer’s action making the corresponding disallowances/additions herein. Nor do we find any substantive lower appellate adjudication as contemplated u/s 250(6) of the Act requiring the CIT(A)/NFAC to first frame points of determination followed by a detailed discussion thereupon. 4. Ms. Ankush Kalra 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. We have given our thoughtful consideration to the foregoing rival stand and are 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, we deem 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 Printed from counselvise.com ITA No. 3569/Del/2024 Naveen Timber Pvt. Ltd. 3 own risk and responsibility, in consequential proceedings. Ordered accordingly. 7. This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 05/01/2026. Sd/- Sd/- (Amitabh Shukla) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 05/01/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "