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Facts
The assessee is in appeal against the order of CIT(A) which confirmed the addition of cash deposits of Rs. 216.12 Lacs. The assessment was framed by the Assessing Officer (AO) on a best judgment basis under Section 144 as the assessee failed to make any representation during the assessment proceedings.
Held
The Tribunal set aside the impugned order and restored the assessment back to the file of the AO for a de novo assessment. The Tribunal directed the assessee to plead and prove its case forthwith, considering the principles of natural justice and potential communication gaps in the faceless regime.
Key Issues
Whether the assessment order passed on a best judgment basis, without proper opportunity for the assessee to represent, violates principles of natural justice?
Sections Cited
144
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रणवष� / Assessment Year: 2017-18) Shri Rajesh Kumar Gupta ITO Ward-II(2) Prop. M/S Roop Medical Store बनाम/ Vs. Aaykar Bhawan, Rishi Nagar Pindi Street, Ludhiana-141008 Ludhiana-141001 �थायीलेखासं./जीआइआरसं./PAN/GIR No.ABFPG-0725L (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Ashwani Kumar (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 07-07-2025 घोषणाकीतारीख /Date of Pronouncement : 09-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Fearless Appeal Central (NFAC), Delhi [CIT(A)] dated 27-09-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 18-12-2019. The sole grievance of the assessee is confirmation of addition of cash deposits for Rs.216.12 Lacs. The assessee failed to make any representation during assessment proceedings. The assessment was confirmed by Ld. CIT(A) or the same very reasons. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is to remit the assessment back to the file of Ld. AO 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. AO. Accordingly, the impugned order is set aside and the assessment is restored 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 09-07-2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 09-07-2025. 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 ASSISTANT REGISTRAR
ITAT CHANDIGARH