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Facts
For AY 2020-21, the assessee's assessment was completed under sections 143(3)/144B, leading to additions related to deductions claimed under sections 10 (Retrenchment Compensation), 80DDB, and 80GGC. The Commissioner of Income-tax (Appeals) [NFAC] affirmed these additions, leading the assessee to appeal before the Tribunal.
Held
The Tribunal noted the assessee's contention of not being provided a meaningful opportunity of being heard by the lower authorities. Given the Departmental Representative's agreement, the Tribunal set aside the CIT(A)'s order and restored the matter to the CIT(A) for fresh adjudication, ensuring proper opportunity of hearing to the assessee.
Key Issues
Whether the lower authorities denied natural justice by not providing an effective opportunity of being heard, and consequently, the validity of additions made under sections 10, 80DDB, and 80GGC.
Sections Cited
Section 10, Section 80DDB, Section 80GGC, Section 143(3), Section 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI
Before: SHRI KUL BHARAT
O R D E R PER KUL BHARAT, JM:
This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 19.02.2023, pertaining to the assessment year 2020-21. The assessee has raised following grounds of appeal:
“1. The Hon'ble Commissioner of National Faceless Appeal Centre (NFAC), Delhi has not followed the law of natural justice while confirming additions by the Learned Assessing Officer.
That the impugned Appeal Order is bad in law, illegal and in violation of rudimentary principal of contemporary jurisprudence.
3. The Hon'ble Commissioner of National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in dismissing the appeal against the
The Hon'ble Commissioner of National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in dismissing the appeal against the order of assessing officer and confirming the addition of Rs. 75,000/- deduction under section 80DDB of the Income Tax Act, 1961.
The Hon'ble Commissioner of National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in dismissing the appeal against the order of assessing officer and confirming the addition of Rs. 11,00,000/- deduction Under section 80GGCof the Income Tax Act, 1961.
6. That the Appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Appeal.”
2. Facts, in brief, are that for A.Y. 2020-21 the assessee filed original return of income on 08.09.2020 declaring total income of Rs. 26,10,070/-. Subsequently, the assessee filed revised return on 23.03.2021 claiming refund of Rs. 11,10,340/-. The case was selected for complete scrutiny under CASS. The assessment was completed u/s 143(3)/144B of the Income-tax Act, 1961 ( the ‘Act’), at the total income of Rs. 33,88,910/- by making additions on account of variation in respect of deduction u/s 80GGC amounting to Rs. 11,00,000/-; variation in respect of deduction u/s 80DDB amounting to Rs. 75,000/-; and variation in respect of retrenchment compensation amounting to Rs. 9,03,840/-. Against this the assessee preferred appeal before the learned CIT(A) who affirmed the action of the AO. Aggrieved against this now the assessee is in appeal before this Tribunal.
Apropos to the grounds of appeal it was contended on behalf of the assessee that authority below did not provide any meaningful and effective opportunity of being heard in utter disregard to principles of natural justice.
5. I have heard rival submissions and perused the material available on record. Considering the stand of the assessee that no meaningful and effective opportunity was provided to the assessee to effectively represent its case before the authorities below and there being no objection from the side of learned DR in restoring the matter to the file of learned CIT(A), therefore, in order to verify the correct facts and to sub-serve the interest of natural justice I set aside the order of learned CIT(A) and restore the matter to the file of learned CIT(A) to decide the appeal afresh, in accordance with law, after affording reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes.
Appeal of the assessee is allowed for statistical purposes.