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Facts
The assessee filed an appeal against the order of the CIT(A) which confirmed an addition of Rs. 19.60 Lacs. The original assessment was framed on a best judgment basis under sections 147 and 144 of the Act. The CIT(A) dismissed the appeal due to delay in filing.
Held
The Tribunal condoned the delay in filing the appeal and restored the matter to the AO for de novo assessment, considering the principles of natural justice and potential communication gaps during the faceless regime. The assessee was given an opportunity to present its case.
Key Issues
Whether the assessment order passed on best judgment basis is sustainable and whether the delay in filing the appeal before the CIT(A) should be condoned.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, ‘DB’ 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) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012- 13 arises out of an order of Ld Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 06-09-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 of the Act on 13-12-2019. The sole grievance of the assessee is confirmation of addition of Rs.19.60 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The registry has noted delay of 6 days in the appeal which stand condoned.
The assessment has been framed on best judgment basis. The Ld. CIT(A) did not admit the appeal for want of condonation of delay. The assessment order was passed on 13-12-2019 whereas the first appeal was filed on 15-12-2021. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for adjudication of appeal on merits which has been opposed by the revenue.
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. AO. Further, the substantial delay fall in lockdown situation arising out of Covid-19 pandemic and therefore, the delay in first appeal should have been condoned. Nevertheless, the impugned order is set aside and the matter is restored back to the file of Ld. AO for de novo assessment after affording reasonable opportunity of hearing to the assessee. The assessee is directed 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. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER लेखा सद" /ACCOUNTANT MEMBER Dated: 01-05-2025 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