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Facts
The assessee filed an appeal for AY 2012-13 against an order passed by the CIT(A) which upheld the best judgment assessment by the AO. The assessee had failed to appear before the lower authorities, and the CIT(A) had dismissed the appeal for non-payment of advance tax.
Held
The Tribunal acknowledged the assessee's non-filer status and the issue of advance tax. However, considering principles of natural justice and potential communication gaps in the faceless regime, an opportunity for a fresh hearing was granted.
Key Issues
Whether the assessee should be granted a fresh opportunity for hearing before the AO, considering the principles of natural justice and the faceless regime.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of an order passed by of learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 28-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 of the Act on 22-1-2019. The assessee has failed to appear before any of the lower authorities. The Ld. AR has pleaded for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.
In the assessment order, Ld. AO has made assessment of cash deposit for Rs.18.93 Lacs for want of any reply from the assessee. The Ld. CIT(A) did not admit the appeal on the ground that the assessee did not pay advance tax. Aggrieved, the assessee is in further appeal before us.
It is seen that the assessee is a non-filer and therefore, the question of payment of advance tax would not arise. Nevertheless, 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 after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 01-04-025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT लेखा सद" /ACCOUNTANT MEMBER Dated: 01-04-2025. आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF