Communication Gaps in Virtual Hearing: ITAT Restores Registration Issue to CIT(E)
The Tribunal set aside the CIT(E)’s order and remanded the matter back for fresh adjudication, allowing the assessee’s appeals for statistical purposes.
M/s Lado Foundation filed the present appeal against CIT(Exemption) Delhi, challenging orders dated September 16, 2025, for the assessment year 2025-26.
Background of the case
The case relates to registration under Sections 12AA and 80G of the Income-tax Act, 1961. During the hearing, the AR submitted that due to communication gaps at different levels, the assessee could not properly present its case and relevant facts before the lower authority. It was requested that the matter be sent back to the CIT(E) for fresh consideration.
On the other hand, the Department strongly supported the decision of the CIT(E) and argued that the original order was correct on the merits.
After considering all the facts, the Tribunal observed that since the virtual hearing system is relatively new, the possibility of communication gaps cannot be completely ruled out. In the interest of justice, the Tribunal decided to give the assessee another opportunity. Consequently, the Tribunal remanded the case to the CIT(E) for fresh consideration.
As a result, both appeals of the assessee were allowed for statistical purposes.
Citation: M/s. Lado Foundation Vs CIT(Exemption) (ITAT Delhi); ITA Nos.7347 & 7349/Del/2025; 30/03/2026; 2025-26.
