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Facts
The assessee filed appeals for AY 2015-16 and 2017-18 against orders of CIT(A) which confirmed assessments framed by the AO. In the first appeal, the assessee failed to make any representation, leading to confirmation of assessments. The AO had made additions on a best judgment basis.
Held
The Tribunal noted the principles of natural justice and potential communication gaps in the faceless regime. It was decided to grant the assessee another opportunity to present its case before the CIT(A).
Key Issues
Whether the assessee should be granted another opportunity of hearing before the lower authorities to substantiate their case, considering principles of natural justice and the faceless regime.
Sections Cited
Section 509/Agr/2024, Section 510/Agr/2024
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Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeals by assessee for Assessment Years (AY) 2015- 16 & 2017-18 arises out of separate orders of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] both dated 20-09-2024 in the matter of assessments framed by Ld. Assessing Officer [AO] for these years. The Ld. AR seek another opportunity of hearing before lower authorities which has been opposed by Ld. CIT-DR.
In AY 2015-16, Ld. AO made various additions on best judgment basis and determined income at Rs.191.19 Lacs. Similar assessment was framed for AY 2017-18. Though the assessee preferred first appeal for both the years, it failed to make any representation therein which resulted into confirmation of assessments. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps at various levels 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 orders, for both the years, are set aside and the appeals are 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.
Both the appeals stand allowed for statistical purposes. Order pronounced on 19th February, 2025.