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Facts
The assessee appealed against an addition of Rs. 51.30 Lacs made by the AO for cash deposits, based on a best judgment assessment under sections 147, 144, and 144B of the Income Tax Act due to the assessee's non-representation. The CIT(A) confirmed this addition. The assessee sought another opportunity of hearing.
Held
The Tribunal, invoking principles of natural justice and acknowledging potential communication gaps in the faceless regime, set aside the CIT(A)'s order. The case was restored to the CIT(A) for a de novo adjudication, granting the assessee a fresh opportunity to present their case.
Key Issues
Whether sufficient opportunity of hearing was provided to the assessee before making and confirming an addition for cash deposits, especially in the context of a faceless assessment and appeal, warranting restoration for re-adjudication.
Sections Cited
147, 144, 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
(िनधा�रणवष� / AssessmentYear: 2016-17) Abida Begum ITO Opp. Four Bhai Hotel. Ward 1 बनाम/ Vs. Dar Shopping Complex Srinagar.190008 Anantnag, J&K-192101. �थायीलेखासं./जीआइआरसं./PAN/GIR No.BBOPA-8741-G (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/Appellant by : Shri Bashir Ahmad Lone (CA) –Ld.AR ��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) 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 09-05-2024 in the matter of an assessment framed byLd. Assessing Officer [AO] on best judgement basis u/s. 147 r.w.s 144 r.w.s. 144B of the Act on 31-10-2023.In the assessment order, Ld. AO made addition of cash deposit in bank account for Rs.51.30 Lacs for want of any representation from the assessee. 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 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 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.