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Facts
The assessee filed appeals for AY 2013-14 and 2014-15 against CIT(A) orders, concerning best judgment assessments made under Sections 147, 144, 144B. Additions included Rs.145.84 Lacs for cash deposits (AY 2013-14) and Rs.166.43 Lacs for unexplained investment u/s 69A (AY 2014-15). The assessee failed to represent its case before lower authorities, leading to the confirmation of these assessments.
Held
Recognizing the assessee's negligence but upholding the principle of natural justice, the Tribunal decided to grant another opportunity for the assessee to substantiate its case. Consequently, the impugned orders were set aside, and the assessments for both years were restored to the Assessing Officer for de novo assessments.
Key Issues
Whether the additions made under best judgment assessment should be sustained despite the assessee's lack of representation, or if a de novo assessment is warranted based on the principle of natural justice.
Sections Cited
147, 144, 144B, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI S.S. VISWANETHRA RAVI, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा)रण वष) / Assessment Year: 2013-14) & 2. आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2014-15) Mr. Paul Nadar Jacab Thomas ITO बनाम 5/55, BU Illam, Sindhu Nagar, Ward-2(4), / Vs. Udumalaipettai, Tirupur-642 126. Tiruppur. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AHNPJ-9583-B (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri Raghav Rajeev Menon (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri R.Raghupathy (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 18-12-2024 घोषणा की तारीख /Date of Pronouncement : 02-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeals by assessee for Assessment Years (AY) 2013- 14 & 2014-15 arise out of separate orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] both dated 13-08-2024 in the matter of separate assessments framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 r.w.s. 144B of the Act on 30-03-2022. The grievance of the assessee is confirmation of addition of cash deposits of Rs.145.84 Lacs in AY 2013-14 and addition of Rs.166.43 Lacs for AY 2014-15 on account of unexplained investment u/s.69A of the Act. The assessments have been made on best judgment basis. Though the assessee preferred further appeals, it failed to make any representation therein also. Accordingly, the assessments were confirmed. Aggrieved, the assessee is in further appeals before us. The Ld. AR has prayed for another opportunity of hearing which has been opposed by Ld. Sr. DR.
Though the assessee has remained negligent in substantiating its case during lower authorities, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned orders are set aside for both the years and the assessments are restored back to the file of Ld. AO for de novo assessments with a direction to the assessee to substantiate its case forthwith.
Both the appeals stand allowed for statistical purposes. Order pronounced on 2nd January, 2025 Sd/- Sd/- (S. S. VISWANETHRA RAVI) (MANOJ KUMAR AGGARWAL) �ाियक सद! / JUDICIAL MEMBER लेखा सद! / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :02-01-2025 DS आदेशकीSितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF