CIT(A) Sustains Additions without Considering Virtual Hearing Request: ITAT Remands Matter for fresh Adjudication [Read Order]

The Cochin Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication, citing the CIT(A)’s failure to consider the assessee’s request for a virtual hearing.

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Shwas Homes Private Limited (assessee), a company based in Ernakulam, faced scrutiny for the Assessment Year (AY) 2014-15. The AO made additions to the Income of the assessee. Aggrieved by the additions, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)].

The CIT(A) dismissed the appeal without considering the request of the assessee for virtual hearing. Therefore, Aggrieved by the order of the CIT(A), the assessee filed an appeal before the ITAT.

The two-member bench comprising Inturi Rama Rao (Accountant Member) and Prakash Chand Yadav (Judicial Member) observed that the CIT(A) had sustained the AO’s additions without addressing the assessee’s request for a virtual hearing.

The appeal before the tribunal was delayed by 133 days. The tribunal observed the delay was due to the illness of the director of the assessee-company. The tribunal after considering the reasons in the affidavit condoned the delay of 133 days.

The tribunal further observed that the assessee had approached the Hon’ble High Court, which directed the CIT(A) to fix a hearing. Accordingly, the CIT(A) scheduled a virtual hearing on 03.08.2022 and issued a notice on 28.07.2022, but the assessee did not attend the virtual hearing.

The tribunal remanded the matter to the CIT(A) for fresh adjudication in the interest of justice. The tribunal directed that the assessee be afforded meaningful opportunities to present the case.

The tribunal directed that the CIT(A) should ensure proper hearing opportunities before passing a new order. The appeal of the assessee was allowed for statistical purposes

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