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Facts
The assessee's return of income for AY 2017-18 was assessed on 17.12.2019 under Section 144, determining total income at Rs. 91,88,130/- with additions for cash deposits and loans. The assessee appealed to the NFAC, claiming non-receipt of notices and inability to produce details, and sought to furnish additional evidence, which was not admitted.
Held
The Tribunal held that the additional evidences furnished by the assessee were relevant for adjudication and deemed it fit to restore the appeal to the NFAC for de novo adjudication. The NFAC was directed to admit the additional evidences and the assessee was given liberty to furnish fresh evidences and grounds.
Key Issues
Whether the NFAC erred in not admitting the additional evidences submitted by the assessee and whether the principles of natural justice were violated due to non-granting of proper opportunity of being heard.
Sections Cited
144
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Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: SHRI M. BALAGANESH & SHRI YOGESH KUMAR U.S.
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 29.07.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 17.12.2019 by the Assessing Officer, ITO, Ward-63(1), Delhi (hereinafter referred to as ‘ld. AO’).
The Ground Nos. 1, 3 and 6 raised by the assessee are challenging the non-granting of proper opportunity of being heard to the assessee thereby violating the principles of natural justice. Since, this goes to the root of the issue, we deem it fit to address the same first.
We have heard the rival submissions and perused the material available on record. The assessee is engaged in manufacturing of drawing boxes. The return of income for AY 2017-18 was filed by the assessee on 04.11.2017 declaring taxable income of Rs. 8,60,130/-. The assessment was completed u/s 144 of the Act on 17.12.2019 determining total income at Rs. 91,88,130/- after making additions on account of cash deposit during demonetization period, unsecured loans of Rs. 3,32,000/- and unexplained repayment of loan of Rs. 41,96,000/-. The assessee preferred an appeal before ld NFAC. The assessee pleaded that notices were not received by him during the assessment proceedings and hence, requisite details could not be produced. Accordingly, he filed additional evidences before the ld NFAC in support of his contentions raised in the grounds. These additional evidences were not admitted by the ld NFAC and ultimately the assessment framed by the ld AO was upheld by the ld NFAC. These facts are not in dispute.
Considering the facts that additional evidences were indeed furnished by the assessee before the NFAC, we hold that the same are relevant for the purpose of adjudication of the dispute, we deem it fit and appropriate, in the interest of justice and fairplay, to restore this appeal to the file of the ld NFAC for de novo adjudication in accordance with law. The assessee’s additional evidences should be admitted by the ld NFAC. The assessee is also at liberty to furnish fresh evidences, if any, together with additional grounds, if any, in support of his contentions. With these directions, the Ground Nos. 1, 3 and 6 raised by the assessee are allowed for statistical purposes.
Since the entire appeal is restored to the file of the ld NFAC for denovo adjudication, the other grounds raised by the assessee become academic in nature.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 15/05/2025.