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Facts
The assessee-appellant, proprietor of M/S Shalimar Restaurant, failed to file a return of income for Assessment Year 2017-18. The Assessing Officer (AO) made a best judgment assessment under Section 144 of the Income Tax Act. The Commissioner of Income Tax (Appeals) [CIT(A)] confirmed the assessment due to the assessee's non-compliance.
Held
The Tribunal noted that the assessee did not appear for the hearing and the appeal was heard with the assistance of the Revenue's DR. Considering the principles of natural justice and potential communication issues in the faceless regime, the Tribunal decided to grant the assessee another opportunity to present their case.
Key Issues
Whether the assessee should be granted an opportunity for de novo adjudication before the CIT(A) due to non-compliance and potential issues in the faceless assessment 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 31-03-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 22-12-2019. At the time of hearing, none appeared for assessee and accordingly, the appeal was heard with the able assistance of Ld. Sr. DR. Having considered case records, our adjudication would be as under. The registry has noted delay of 4 days in the appeal which stand condoned.
In the assessment order, Ld. AO assessed total income of Rs.22.51 Lacs on best judgment basis since the assessee failed to file the return of income. 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