RAJ KUMAR ,LUDHIANA vs. CIT (NFAC), DELHI

Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 29-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 21-12-2022. The registry has noted delay of 39 days in the appeal which stand condoned. At the time of hearing, none appeared for assessee. The Ld. CIT-DR pleaded for dismissal of the appeal.

The sole grievance of the assessee is confirmation of addition of unverifiable purchases for Rs.10.91 Crores. The assessee failed to substantiate its case before Ld. AO. The Ld. CIT(A) estimated profit of 12.5% against the same for want of any effective representation from the assessee. Aggrieved, the assessee is in further appeal before us. 3. 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. 4. The appeal stand allowed for statistical purposes.