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Facts
The case pertains to AY 2013-14, where the AO made an addition of Rs. 69.33 Lacs under Section 69A for cash deposits in a best judgment assessment under Section 147 r.w. Section 144 due to lack of assessee's representation. The CIT(A) confirmed the additions, leading the assessee to appeal to the ITAT, requesting the case to be remitted back for de novo adjudication on merits.
Held
The Tribunal, considering principles of natural justice and potential communication gaps in the faceless regime, decided to grant the assessee another opportunity. Consequently, the impugned order was set aside, and the appeal was restored to the CIT(A) for a de novo adjudication on merits, with a direction to the assessee to present its case forthwith.
Key Issues
Whether the assessee should be granted another opportunity to present its case before the CIT(A) for a de novo adjudication, especially considering the principles of natural justice and communication challenges in the faceless assessment regime.
Sections Cited
147, 144, 69A
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 07-11-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgement basis u/s 147 r.w.s.144 of the Act on 29-03-2022. In the assessment order, Ld. AO has made additions of cash deposit of Rs.69.33 Lacs u/s 69A for want of any representation from the assessee. The assessment was confirmed by Ld. CIT(A) for the same very reasons. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is to remit the appeal back to Ld. CIT(A) for de novo adjudication on merits which has been opposed by Ld. Sr. DR.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we deem it fit to afford another opportunity of hearing to the assessee to substantiate its case before Ld. CIT(A). Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication on merits with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 04-08-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 04-08-2025. आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF