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Facts
The assessee filed an appeal for AY 2017-18 against a CIT(A) order that confirmed an assessment under section 143(3). The assessment raised income from Rs.4.46 Lacs to Rs.151.78 Lacs because the assessee failed to file complete details before the AO and made no representation before the CIT(A). A 144-day delay in filing the appeal was also noted.
Held
Recognizing natural justice principles and potential communication gaps in the faceless regime, the Tribunal condoned the delay and admitted the appeal. The CIT(A) order was set aside, and the matter was restored to the CIT(A) for a de novo adjudication, granting the assessee another opportunity to present its case.
Key Issues
Whether the assessee should be granted another opportunity to present its case given the lack of representation in the faceless assessment and the delay in filing the appeal.
Sections Cited
143(3), Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963
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
(िनधा�रणवष� / AssessmentYear: 2017-18) Shri Arif Hussain Wani ITO बनाम/ Prop. of Alamdar Trading Company Ward 1 Palllar Budgam Near DC Office, Srinagar.190001 Vs. Jammu and Kashmir 190006. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAUPW-0284-A (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Adjournment Application ��थ�कीओरसे/Respondentby : Sh. Charan Dass(Addl. CIT) – Ld. Sr DR सुनवाईकीतारीख/Date of Hearing : 16-07-2025 घोषणाकीतारीख /Date of Pronouncement : 07-08-2025 आदेश / 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 Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-09- 2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 27-12-2019. The registry has noted delay of 144 days in the appeal, the condonation of which has been sought by the assessee on the strength of condonation petition. The Ld. Sr. DR pleaded for dismissal of the appeal. In the assessment order, Ld. AO assessed income at Rs.151.78 Lacs as against returned income of Rs.4.46 Lacs. The assessee failed to file complete details before Ld. AO. The Ld. CIT(A) confirmed the assessment for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we admit the appeal and 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 by way of speaking order 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. Sd/- Sd/- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07-08-2025 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT AMRITSAR