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Facts
The assessee's appeal for AY 2017-18 arose from an order confirming an assessment framed on best judgment basis due to the assessee's failure to represent. The assessee had failed to make any representation before the Assessing Officer and the CIT(A).
Held
The Tribunal acknowledged the principles of natural justice and potential communication gaps in the faceless regime. Therefore, the Tribunal granted the assessee another opportunity to present their case before the CIT(A).
Key Issues
Whether the assessee should be granted another opportunity for hearing before the lower authorities, considering principles of natural justice and communication gaps in the faceless regime.
Sections Cited
144
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Income Tax Appellate Tribunal, DIVISION BENCH, AMRITSAR
Before: 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) 2017-18 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 25-09-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 28-12-2019. The Ld. AR pleaded for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR. Having considered case records, our adjudication would be as under.
In the assessment order, Ld. AO made addition of cash deposit and determined total income of Rs.167.63 Lacs. The assessment was framed on best judgment basis since the assessee failed to make any representation therein. The Ld. CIT(A) confirmed the assessment for want of any compliance 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 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 after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith. 4. 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: 01-04-2025. 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