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Facts
The assessee appealed against a CIT(A) order for AY 2019-20, which confirmed an addition of Rs. 343.96 Lacs under Section 69A. The original assessment was framed by the AO on a best judgment basis under Section 147 read with Section 144, and the CIT(A) confirmed the addition due to the assessee's non-representation.
Held
The Tribunal set aside the CIT(A)'s order and restored the assessment to the AO for a de novo assessment, directing the assessee to present their case. This decision was made considering natural justice and potential communication issues in the faceless assessment system.
Key Issues
Whether the addition confirmed by the CIT(A) should be sustained when the assessee alleges lack of proper opportunity to be heard, especially in the context of faceless assessment proceedings.
Sections Cited
147, 144, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रण वष� / Assessment Year: 2019-20) Ms. Savita Bansal ITO w/o Ramandeep Bansal Ward-3 बनाम/ Vs. House No. 423/5 Preet Vihar Nabha 174201 Nabha-147201 Patiala. �थायीलेखासं./जीआइआरसं./PAN/GIR No. ARNPB-8405-A (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri Ajay Chauhan (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Smt. Kusum Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 16-07-2025 घोषणाकीतारीख /Date of Pronouncement : 23-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Central (NFAC), Delhi [CIT(A)] dated 31-07-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s.144 of the Act on 08-02-2024. The sole grievance of the assessee is confirmation of addition u/s 69A for Rs.343.96 Lacs. The Ld. CIT(A) confirmed the assessment for want of any representation from the assessee. Aggrieved, 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. CIT-DR.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we set aside the impugned order and restore the assessment back to the file of Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 23-07-2025.