ITAT Intervenes, Directs CIT(A) to Grant Personal Hearing to Assessee via Video Conferencing [Read Order]

Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter to the Commissioner of Income Tax (Appeals), CIT(A) for fresh adjudication due to the denial of a personal hearing to the assessee.

Jagdish Rasiklal Dave, the appellant-assessee, had an assessment order passed against him under Section 143(3) of the Act, with a total income determined at Rs. 4,67,15,090  after making a disallowance of Rs. 3,38,16,395, dated not mentioned. In response, he filed an appeal before the CIT(A), which was dismissed by order dated 12/03/2024. This dismissal by the CIT(A) is the subject of the current challenge.

Law and Procedure for Filing of Appeals

The assessee challenged the National Faceless Appeal Centre (NFAC)'s decision to uphold an assessment order, which raised his income from Rs. 71,50,970 to Rs. 4,67,15,090, claiming the assessment was unlawful and violated natural justice as he was not granted a personal hearing via video conferencing.

He disputed the addition of Rs. 57,47,724, arguing it was speculative and unsupported, as the amount had been voluntarily offered as additional income during assessment proceedings and due tax had been paid on the same.

Additional objections included the disallowance of cost of improvement of Rs. 3,38,16,395, the addition of Rs. 57,47,724, and the non-granting of personal hearing via video conferencing.

Nupur Shah the assessee's counsel argued that the CIT(A)'s decision was flawed due to a violation of natural justice, as the appellant was not provided with a personal hearing via video conferencing. As a result, it was requested that the order be set aside. In contrast, the Departmental Representative (DR) defended the decisions of the lower authorities, but the Tribunal ultimately decided to restore the matter to the file of the ld. CIT(A) for fresh adjudication.

Law and Procedure for Filing of Appeals

The Tribunal considered the submissions of both parties and examined the available records. The assessee had repeatedly requested a personal hearing via video conferencing, which was denied by the  CIT(A), contrary to the principles of natural justice.

However, the Tribunal, in the interest of justice, deemed it fit to restore the matter to the file of the ld. CIT(A) for fresh adjudication, allowing the assessee an opportunity of being heard via video conferencing.

The two-member bench comprising Dr. B.R.R. Kumar (Vice-President) and Suchitra Kamble (Judicial Member) decided to restore the matter to the file of the ld. CIT(A) for fresh adjudication, ensuring that the assessee is provided an opportunity of being heard via video conferencing.

In conclusion,the appeal was partially allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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