J. SATHISH KUMAR,CHENNAI vs. ITO, NCW-6(1),, CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 09-08- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 28-05-2023. Upon perusal of assessment order, it could be seen that the assessment has been framed on best judgment basis making addition of closing cash balance of Rs.54.81 Lacs as unexplained investment u/s.69 of the Act. The assessee failed to appear during first appellate proceedings also and accordingly, the assessment was confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. AR has prayed for another opportunity of hearing which has been opposed by Ld. Sr. DR.

Though the assessee has remained negligent in substantiating its case during lower authorities, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case forthwith.

The appeal stand allowed for statistical purposes. Order pronounced on 31st December, 2024