R.R.N.SALES PRIVATE LIMITED,PATIALA vs. INCOME TAX OFFICER, WARD-4, PATIALA, PATIALA

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ITA 1027/CHANDI/2024Status: DisposedITAT Chandigarh04 June 2025AY 2017-18Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, considering the principles of natural justice and potential communication gaps in the faceless regime, granted the assessee another opportunity to present its case before the CIT(A). The impugned order was set aside, and the appeal was restored for de novo adjudication.

What were the facts?

The assessee failed to file its return of income for AY 2017-18. The case was re-opened to examine the source of a cash deposit, which led to an addition of Rs. 102.24 Lacs. This addition was confirmed in the first appeal due to a lack of evidence.

What were the issues?

Whether the assessee should be granted another opportunity to substantiate its case before the CIT(A) due to potential communication gaps in the faceless regime.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 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: 2017-18) M/s R. R. N. Sales Private Limited ITO C/o Shri Rishab Kapoor (Advocate) बनाम/ Ward 4, 11, Yadvindra Colony Patiala. Vs. The Mall, Patiala, Punjab 147001 �थायीलेखासं./जीआइआरसं./PAN/GIR No.AAHCR-1516-L (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri Rishab Kapoor (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 02-06-2025 घोषणाकीतारीख /Date of Pronouncement : 04-06-2025 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 Central (NFAC), Delhi [CIT(A)] dated 07-08-2024 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 29-03-2022. From the record, it emerges that the assessee did not file its return of income. To examine the source of cash deposit, the case was re-opened. However, the assessee failed to substantiate the cash deposit which resulted into an addition of Rs.102.24 Lacs in the hands of the assessee. During first appeal, the assessee stated that sales proceeds were deposited into the bank account. However, the addition was confirmed for want of acceptable evidences from the assessee. Aggrieved, the assessee is in further appeal before us. The Ld. AR has sought another opportunity of hearing before Ld. CIT(A) which has been opposed by Ld. Sr. DR.

2.

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.

3.

The appeal stand allowed for statistical purposes. Order pronounced on 04-06-2025 Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 04-06-2025. 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

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