The appeal was preferred by the assessee against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2022-23. The assessee had originally filed its return of income declaring a total income of ₹19,32,260. Subsequently, the assessment was completed under section 143(3) read with section 144B of the Income Tax Act, 1961, wherein an addition of ₹22,70,000 was made.

Aggrieved by the assessment order dated 21.03.2024, the assessee preferred an appeal before the Ld. CIT(A), who, vide order dated 04.03.2025, dismissed the appeal. Against the said appellate order, the assessee approached the Income Tax Appellate Tribunal.

Before the Tribunal, the learned counsel for the assessee contended that the Assessing Officer failed to grant sufficient opportunity of being heard and did not consider the replies submitted by the assessee during the assessment proceedings. It was further submitted that the Ld. CIT(A) also failed to adjudicate the appeal on merits and did not provide adequate opportunity to the assessee before passing the impugned order.

On the other hand, the Departmental Representative relied upon the orders passed by the lower authorities and argued that adequate opportunity had been provided and that the assessee had responded at a belated stage.

After considering the submissions of both parties and examining the material available on record, the Tribunal observed that the assessee had filed replies on 18.03.2024 and 19.03.2024, whereas the assessment order was passed on 21.03.2024 without due consideration of the said replies. The Tribunal held that such action amounted to denial of a reasonable opportunity of being heard.

Accordingly, the Tribunal restored the matter to the file of the Assessing Officer for framing a de novo assessment in accordance with law, after duly considering the replies filed by the assessee and after granting a proper opportunity of hearing.

The appeal was thus partly allowed for statistical purposes.

 

SOURCE LINK:  https://itat.gov.in/public/files/upload/1766033654-2xJMSe-1-TO.pdf


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