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Facts
The assessee filed a return of income declaring a loss. The Assessing Officer completed the assessment by making several additions, resulting in an assessed income. The assessee appealed to the CIT(Appeals), which partly allowed the appeal.
Held
The assessee had sought a hearing through video conference as per CBDT Notification No.139/2021, but the CIT(A) passed the order without providing this opportunity. Therefore, the Tribunal remitted the appeal back to the CIT(Appeals) for fresh consideration, adhering to the principles of natural justice and the said notification.
Key Issues
Whether the CIT(Appeals) erred by passing an order without providing a hearing opportunity as mandated by CBDT Notification No.139/2021 and violating principles of natural justice.
Sections Cited
68, 56(2)(viib), 37(1)
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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K. & SHRI LAXMI PRASAD SAHU
Per Laxmi Prasad Sahu, Accountant Member
This appeal is filed by the assessee against order dated 15.09.2023 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC], for the AY 2017-18.
The brief facts of the case are that the assessee filed return of income on 30.10.2017 declaring loss of Rs.35,95,928. The case was selected for scrutiny and statutory notices were issued to the assessee.
After considering the entire submissions of the assessee, the assessment was completed by making addition as under:-
Total income returned by the assessee: Total loss Rs. 35,95,928 Add: Cash deposit u/s. 68 Rs. 32,81,000 Add: Depreciation Rs. 12,36,826 Add: Share u/s. 68 Rs. 4,60,000 Add: 56(2)(viib) Rs. 18,36,252 Add: undisclosed sales Rs. 85,65,169 Add: disallowance u/s 37(1) Rs. 63,574 Assessed income Rs.1,18,46,890 3. Aggrieved from the above order, the assessee filed appeal before the CIT(Appeals) and made detailed submissions. The CIT(Appeals) after considering the entire submissions, he partly allowed the appeal of the assessee. Against this, the assessee is in appeal before the ITAT.
The ld. AR reiterated the submissions before the lower authorities and submitted that as per para 2.6 & 2.7 of the written synopsis (page 5) personal hearing through video conferencing was sought for from the CIT(A), but the CIT(A) has passed the order without opportunity of hearing as mandated by the CBDT vide Notification No.139/2021 dated 28.12.2021 and violating the principles of natural justice.
The ld. DR relied on the order of the lower authorities and submitted that the CIT(Appeals) has passed the order on the basis of submissions made before him and a detailed order has been passed.
Considering the rival submissions, we note that the AO has made various additions as noted above and the CIT(Appeals) has partly allowed the appeal of the assessee. We note that the assessee has sought for hearing through video conference as mandated by CBDT Notification No.139/2021 dated 28.12.2021, but the CIT(A) has been passed the order without giving such opportunity. Therefore, considering the principle of natural justice, we remit the appeal to the CIT(Appeals) for fresh consideration after giving opportunity of being heard to the assessee as per the above CBDT Notification and decision as per law. The assessee is directed to follow the directions of the CIT(Appeals) and produce all the relevant documents to substantiate its claim, without seeking unnecessary adjournment for early disposal of the case. We make it clear that we have not gone into the merits of the case.
In the result, the appeal of the assessee is allowed for statistical purposes in the above terms.