What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's negligence, granted another opportunity for the assessee to present its case, setting aside the lower authorities' orders. The matter was restored to the AO for a fresh assessment.

The assessee's appeal for AY 2017-18 concerns an assessment made on a best judgment basis by the AO, which included an addition of Rs. 26.68 Lacs for cash deposits. The assessee failed to make submissions in the first appellate proceedings.

What were the issues?

Whether the assessee should be granted another opportunity to substantiate its case despite prior negligence in appellate proceedings.

Natesan Ganesan, Pondicherry vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, 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 the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 06-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Act on 01-10-2019. The assessment has been made on best judgment basis and Ld. AO made addition of cash deposit of Rs.26.68 Lacs. The assessee failed to make any submissions during first appellate proceedings also. Accordingly, the assessment was confirmed against which 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, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the orders of lower authorities are set-aside and the matter is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case failing which Ld. AO would be at liberty to proceed with the assessment on the basis of material on record.

The appeal stand allowed for statistical purposes. Order pronounced on 1st May, 2024 Sd/- Sd/- (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) �ाियक सद5 / JUDICIAL MEMBER लेखा सद5 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 01-05-2024 DS आदेशकीTितिलिपअ0ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

NATESAN GANESAN,PONDICHERRY vs. ITO, WARD-1, PONDICHERRY

What did the Tribunal hold?

What were the facts?

What were the issues?

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