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Facts
The assessee's appeal for AY 2017-18 arose from an order confirming additions made by the AO under Section 144. The CIT(A) confirmed the additions due to the assessee's non-representation. No one appeared for the assessee during the hearing.
Held
The Tribunal set aside the impugned order and restored the matter to the AO for a fresh assessment. This was done to uphold the principles of natural justice and provide the assessee with an opportunity to be heard and present their case.
Key Issues
Whether the assessee should be granted an opportunity for a de novo assessment due to lack of representation, upholding principles of natural justice.
Sections Cited
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
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 Centre (NFAC), Delhi [CIT(A)] dated 25-04-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 29-11-2019. In the assessment order, Ld. AO made certain addition of cash deposit of Rs.12.97 Lacs. The assessment was confirmed by Ld. CIT(A) for want of any effective representation from the assessee. At the time of hearing, none appeared for assessee. The Ld. Sr. DR has pleaded for dismissal of the appeal.
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 matter of assessment stand 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. Orders pronounced on 24th March, 2025.