Tax Appeal Remanded: NFAC to Offer Three Hearings; Delay Condoned Prioritizing Justice Over Technicalities.

The appellant's appeal against the NFAC's order under section 144 of the Income Tax Act, 1961, was remanded for fresh adjudication. The ITAT directed the NFAC to provide three effective opportunities for hearing, requiring the taxpayer to file and substantiate all relevant facts. A 4-day delay was condoned, emphasizing substantial justice over technicalities. The appeal was allowed for statistical purposes.

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Issues involved: Appeal against National Faceless Appeal Centre's order under section 144 of the Income Tax Act, 1961 for assessment year 2011-12.

Details of the Judgment:

1. The appellant's appeal was against the National Faceless Appeal Centre's order, which noted the appellant's continuous non-appearance in lower appellate proceedings. The order rejected the appellant's contentions without deciding on substantive grounds as required under section 250(6) of the Act. The Judicial Member deemed it appropriate to send the appeal back to the NFAC for fresh adjudication within three effective opportunities of hearing, with the condition that the taxpayer must file and prove all relevant facts. The decision was made in the interest of justice.

2. The delay of 4 days in the case was condoned based on the appellant's submissions, citing the principle established in Collector, Land Acquisition vs. MST Katiji [1987] 167 ITR 471 (SC) that technical aspects should not hinder substantial justice.

3. The appellant's appeal was allowed for statistical purposes based on the above terms. The order was pronounced in the open court on 08.03.2024.

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