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Facts
The assessee filed an appeal against an order confirming an assessment framed under section 144 r.w.s. 147 on a best judgment basis due to no reply from the assessee. The Assessing Officer (AO) made an addition of Rs. 37.35 Lacs for undisclosed investment.
Held
The Tribunal held that to uphold the principles of natural justice and considering potential communication gaps in the faceless regime, the assessee should be given another opportunity to present their case before the CIT(A).
Key Issues
Whether the assessee was afforded a reasonable opportunity of being heard before the assessment was confirmed, and if not, whether a de novo adjudication is required.
Sections Cited
144, 147, 143(3)
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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
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), NFAC, Delhi [CIT(A)] dated 30-05-2023 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 r.w.s. 147 of the act on 05-12-2018. In the assessment order, Ld. AO made addition of undisclosed investment for Rs.37.35 Lacs for want of any reply from the assessee. The Ld. CIT(A) confirmed the assessment for the same very reason. 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. 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 after affording reasonable opportunity of hearing to the assessee. The assessee is directed to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 02-06-2025. (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 02-06-2025. 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