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Facts
The assessee is in appeal against an order of the CIT(A) that confirmed the addition of Rs. 48.50 Lacs as cash deposit. The assessment was framed by the AO on a best judgment basis under Section 144 read with Section 147 of the Act. The assessee had failed to make any substantive representation before the lower authorities.
Held
The Tribunal, considering the principles of natural justice and potential communication gaps in the faceless regime, decided to grant the assessee another opportunity of hearing before the CIT(A). The impugned order was set aside and the appeal was restored for de novo adjudication.
Key Issues
Whether the assessee should be granted another opportunity of hearing before the CIT(A) to substantiate its case, especially considering the assessment was made on a best judgment basis.
Sections Cited
144, 147, 143(3)
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
(िनधा�रणवष� / Assessment Year: 2011-12) Smt. Kuldeep Kaur Grewal ITO w/o Shri Jagdeep Singh Ward 2 बनाम/ Vs. VPO Gagra, Tehsil Jagraon Jagraon. Ludhiana 142026 �थायीलेखासं./जीआइआरसं./PAN/GIR No.CRQPK-0923-H (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri Ashwani Kumar (CA) & Ms. Muskan Garg (CA) – Ld. ARs ��थ�कीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 04-06-2025 घोषणाकीतारीख /Date of Pronouncement : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Central (NFAC), Delhi [CIT(A)] dated 08-11-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 r.w.s.147 of the Act on 26-12-2018. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.48.50 Lacs. The assessee has failed to make any substantive representation before any of the lower authorities. Aggrieved, the assessee is in further appeal before us. The Ld. AR has sought 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 with a direction to the assessee to plead and prove its case.
The appeal stand allowed for statistical purposes. Order pronounced on 09-06-2025.