SANJAY KUMAR S/O SH JAGDISH DUTT VILLAGE BUTTAN PO AGHAR JITTO REASI DISTT UDHAMPUR JAMMU AND KASHMI,UDHAMPUR vs. INCOME TAX OFFICER WARD KATRA AAYAKAR BHAWAN RAIL HEAD COMPLEX PANAMA CHOWK JAMMU, JAMMU

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ITA 177/ASR/2025Status: DisposedITAT Amritsar18 August 2025AY 2016-2017Bench: SHRI MANOJ KUMAR AGGARWAL (Accountant Member), SHRI UDAYAN DAS GUPTA (Judicial Member)2 pages

AI SummaryAllowed

Facts

For AY 2016-17, the Assessing Officer made an addition of Rs. 5.75 Lacs on account of cash deposits under sections 147 r.w.s. 144B of the Income Tax Act. The Commissioner of Income Tax (Appeals) confirmed this addition due to the assessee's failure to provide a reply. The assessee subsequently filed an appeal before the ITAT.

Held

The Tribunal, considering principles of natural justice and potential communication gaps in the faceless assessment regime, set aside the CIT(A)'s order. It directed the CIT(A) to conduct a de novo adjudication, requiring the assessee to present and substantiate its case. The appeal was allowed for statistical purposes.

Key Issues

Whether the CIT(A) was justified in confirming the addition without allowing sufficient opportunity for the assessee to be heard, especially in the context of the faceless assessment regime.

Sections Cited

147, 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM

O R D E R Manoj Kumar Aggarwal (Accountant Member) Aforesaid appeal by assessee for Assessment Year (AY) 1. 2016-17 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 20-01-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 23-03-2022 wherein Ld. AO made addition of cash deposit of Rs.5.75 Lacs. The Ld. CIT(A) confirmed the addition for want of any reply from the assessee. Aggrieved, the assessee is in further appeal before us. The Ld. AR seeks another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.

Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we set aside the impugned order and direct Ld. CIT(A) for de novo adjudication with a direction to the assessee to plead and prove its case forthwith.

The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.