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Facts
The assessee's return for AY 2014-15 was scrutinized under Section 147 r.w.s. 144B to verify a cash deposit of Rs. 12.50 Lacs. The assessee failed to make any representation during assessment, and the CIT(A) confirmed the assessment. The assessee appealed, seeking another opportunity to be heard by the lower authorities.
Held
The Tribunal, considering principles of natural justice and potential communication gaps in the faceless assessment regime, set aside the impugned order. It directed the Ld. Assessing Officer to conduct a fresh assessment, instructing the assessee to present and prove their case without delay.
Key Issues
Whether the assessment was valid given the assessee's lack of opportunity to present their case, and if principles of natural justice warrant a fresh assessment in the faceless regime.
Sections Cited
Section 147, Section 144B, 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: 2014-15) Shri Rajiv Singla ITO C/o J. K. Gupta (Advocate) Ward 1(1) बनाम/ Vs. 4702 Hospital Bazar Bathinda 151001. Bathinda-151005, �थायीलेखासं./जीआइआरसं./PAN/GIR No.ABVPS-1867-P (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Sh. Pranav Gupta (Advocate) –Ld.AR ��थ�कीओरसे/Respondentby : Sh. Charan Dass (Addl. CIT) – Ld. Sr DR सुनवाईकीतारीख/Date of Hearing : 24-07-2025 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) 2014-15 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-03- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 147 r.w.s. 144B of the Act on 01-03-2022. From case records, it could be seen that to verify the sources of cash deposit of Rs.12.50 Lacs, the assessee’s return of income was subjected to scrutiny but the assessee failed to make any representation during assessment proceedings. The Ld. CIT(A) confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is 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. AO to make fresh assessment 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.