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Facts
The assessee's appeal for AY 2012-13 arose from an order confirming an assessment framed on a best judgment basis. The Assessing Officer made additions based on cash deposits, and the assessee failed to make submissions. The CIT(A) confirmed the assessment.
Held
The Tribunal set aside the impugned order and restored the assessment to the file of the AO for de novo assessment. The assessee was given an opportunity to plead and prove its case, considering the principles of natural justice.
Key Issues
Whether the assessee should be granted another opportunity for de novo assessment due to procedural lapses and principles of natural justice in a faceless regime.
Sections Cited
147, 144
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) 2012-13 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-06-2024 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 20-12-2019. In the assessment order, Ld. AO made addition of cash deposits for Rs.25.99 Lacs. The assessee failed to make any submissions before Ld. AO. The Ld. CIT(A) also confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us.
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.
The appeal stand allowed for statistical purposes. Order pronounced on 01-07-2025.