The CIT(A), functioning through the National Faceless Appeal Centre (NAFC), dismissed the assessee’s appeal without considering the application for condonation of delay and without taking note of binding judgments of the Supreme Court and the High Court granting time to pursue alternative remedies. The Department fairly conceded before the High Court that the impugned order appeared to have been passed without proper examination of records and deserved remand. The Court held that the action of the CIT(A) reflected gross negligence, if not dereliction of duty, as an appellate authority is expected to examine all relevant aspects before passing an order, and such mechanical disposal caused unnecessary hardship and multiplicity of litigation. Accordingly, the impugned order was set aside and the CIT(A) was directed to consider the appeal afresh after granting personal hearing and to pass a reasoned order within three months. Considering the hardship and litigation expenses suffered by the assessee, the Department was directed to pay costs of Rs. 10,000 to the assessee, with liberty to recover the same from the erring officer in accordance with law. (AY. 2016-17).