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Facts
The assessee appealed against the CIT(A)'s order which confirmed additions of Rs. 229.84 Lacs made in an assessment framed under Section 143(3) read with Section 144B. The assessee had failed to make any representation during the first appeal, and their representative's sole prayer before the Tribunal was for another opportunity of hearing.
Held
Considering principles of natural justice and potential communication gaps in the faceless regime, the Tribunal set aside the CIT(A)'s order. The appeal was restored to the CIT(A) for a de novo adjudication on merits, directing the assessee to plead and prove their case forthwith.
Key Issues
Whether the assessee should be granted another opportunity to present their case before the CIT(A) when they failed to make a representation during the first appeal, especially in the context of the faceless assessment regime.
Sections Cited
143(3), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & 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) 2021-22 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-11-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s.144B of the Act on 29-12- 2022. The sole grievance of the assessee is confirmation of additions of Rs.229.84 Lacs. The assessee failed to make any representation during first appeal and accordingly, the assessment was confirmed against which the assessee is in further appeal before us. The only prayer of Ld. AR is another opportunity of hearing before lower authorities 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 30th July, 2025.