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Facts
The assessee's appeal for AY 2017-18 arose from a CIT(A) order confirming an addition of Rs. 59.83 Lacs under Section 69A. The initial assessment was made ex-parte as the assessee failed to appear. The first appeal to the CIT(A) was dismissed for delay, and additional evidence was not admitted.
Held
The Tribunal noted the delay in the first appeal and the principles of natural justice. Considering potential communication gaps in the faceless regime, the Tribunal set aside the CIT(A)'s order and restored the appeal to the CIT(A) for a fresh adjudication on merits.
Key Issues
Whether the CIT(A) erred by dismissing the appeal on delay and merits without considering the principles of natural justice and the possibility of communication gaps in the faceless regime.
Sections Cited
147, 144, 69A
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रणवष� / Assessment Year: 2017-18 Unique Insurance Services ITO Ward 6(1) बनाम/ 759/1 Near Punjabi Bhawan Aaykar Bhawan, Rishi Nagar Vs. Bharat Nagar Chowk, Ludhiana. Ludhiana. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AABFU-6174-G (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Parikshit Aggarwal (CA) and Ms. Shruti Khandewal (Adv.) – Ld. ARs ��थ�कीओरसे/Respondent by : Dr Ranjit Kaur (Addl.CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 02-07-2025 घोषणाकीतारीख /Date of Pronouncement : 03-07-2025 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 Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-08-2024 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 09-03-2022. The sole grievance of the assessee is confirmation of addition u/s 69A for Rs.59.83 Lacs. The assessee failed to appear during assessment proceedings. The first appeal was filed with a delay of 278 days. The Ld. CIT(A) dismissed the appeal in limine on delay. On merits also, the Ld. CIT(A) did not admit the additional evidences as filed by the assessee and confirmed the assessment. Aggrieved the assessee is in further appeal before us wherein Ld. AR seek disposal of appeal on merits in the light of additional evidences.
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. The delay before Ld. CIT(A) stand condoned.
The appeal stand allowed for statistical purposes. Order pronounced on 03-07-2925.