Lapses In Faceless Assessment Regime Should Not Render Prejudice To Effective Administration & Disposal Of Matter: Kolkata ITAT
While emphasizing that in the initial phase of a new technologically driven faceless regime, certain lapses of procedural requirements may occur, the Kolkata ITAT pointed that that such lapses should not lead to rendering prejudice to effective administration and disposal of the matter.The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “lapses...
While emphasizing that in the initial phase of a new technologically driven faceless regime, certain lapses of procedural requirements may occur, the Kolkata ITAT pointed that that such lapses should not lead to rendering prejudice to effective administration and disposal of the matter.
The Bench of Sanjay Garg (Judicial Member) and Girish Agrawal (Accountant Member) observed that “lapses cannot be attributed to any wilful default on either party owing to nascent stage of the faceless regime which may take some time for the purpose of its stabilization and acclimatization for all the stakeholders”. (Para 8)
As per the brief facts of the case, the assessee filed its return reporting total income of Rs.3,28,700/-. Case of the assessee was selected for scrutiny for the reason “large value of cash deposited during demonetization period as compared to returned income.” The AO enquired from the assessee about the deposit of cash of Rs.11,51,000/- in specified bank notes (old notes) during the demonetization period. In absence of submissions made by the assessee, the assessment was completed by making this addition and passing the assessment order u/s. 144 of the Act.
The Bench noted that both, at the stage of assessment as well as first appellate proceeding, there was no representation made by the assessee on the explanation called for by the AO as well as CIT(A).
At the same time, the Bench appreciated that assessee comes from a muffasil area of Authpur, North 24 Parganas and the e-mail ID stated in Form 36 appears to be of some Chartered Accountant professional.
The Bench also noted that appeal of the assessee was adjudicated in National Faceless Appeal Centre (NFAC), Delhi in terms of CBDT Notification dated Sep 25, 2020 and the present faceless regime in the administration of the Act is a recent technological introduction which is going through its teething phase.
The ITAT therefore remitted the matter back to the file of AO since the impugned assessment order is u/s. 144 and no submission had been made in the course of assessment proceedings.
Counsel for Appellant/ Assessee: Miraj D. Shah
Counsel for Respondent/ Revenue: Subhro Das
Case Title: Abhishek Shaw verses ITO
Case Number: ITA No.1039/Kol/2023