What did the Tribunal hold?

The Tribunal, considering the principles of natural justice and potential communication gaps in the faceless regime, decided to grant the assessee another opportunity to present its case before the Assessing Officer. The impugned order was set aside, and the assessment was restored for a de novo assessment.

The assessee's appeal relates to AY 2016-17, arising from an order confirming the assessment of agricultural income as 'income from other sources'. The assessee failed to appear before lower authorities, and the Assessing Officer proceeded on a best judgment basis.

What were the issues?

Whether the assessee should be granted another opportunity for a de novo assessment after failing to appear before lower authorities.

Chander Mohan, Shimla vs ITO | ITAT Chandigarh 2025

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: 2016-17) Shri Chander Mohan ITO बनाम/ Dhingu Dhar Nath Bhawan Ward 01, Vs. Sanjauli, Himachal Pradesh 171006 Shimla.171003 �थायीलेखासं./जीआइआरसं./PAN/GIR No.ALMPM-9895-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Ms. Isha Sharma (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Sh. Vivek Vardhan (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) 2016- 17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Central (NFAC), Delhi [CIT(A)] dated 19-12-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 29-11-2018. The sole grievance of the assessee is assessment of agricultural income of Rs.28.32 Lacs as ‘income from other sources’ which has been confirmed by Ld. CIT(A). The assessee has failed to appear before any of lower authorities. 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. 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 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 ASSISTANT REGISTRAR

ITAT CHANDIGARH

CHANDER MOHAN,SHIMLA vs. INCOME TAX OFFICER, SHIMLA

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