Sankathaprasad Shyamraj Rajbhar Vs ITO (ITAT Mumbai)
ITAT Mumbai: Faceless Additions Set Aside – Salaried Assessee Deserves Fair Opportunity
In this case, the ITAT Mumbai addressed additions made in a best judgment assessment u/s 147 r.w.s. 144 against a salaried employee, primarily due to non-furnishing of documents during faceless proceedings. The additions related to HRA exemption, PF withdrawal, interest income, and salary components.
The CIT(A) had mechanically confirmed the additions solely because documentary evidence was not filed, without examining the explanations offered during appellate proceedings.
The Tribunal observed that:
- The assessee was a salaried taxpayer with TDS deducted, and issues involved were routine and verifiable
- The failure to submit documents appeared to be due to lack of proper opportunity and understanding of faceless proceedings
- Principles of natural justice require fair opportunity, especially where claims relate to statutory exemptions and identifiable receipts
The ITAT held that the CIT(A)’s approach of confirming additions without verification defeats the cause of justice.
Final Outcome:
- CIT(A) order set aside
- Matter restored for fresh adjudication
- Direction to examine evidence relating to HRA, PF withdrawal, interest, and salary components
This ruling underscores that procedural lapses in faceless assessments cannot override substantive justice, particularly for small salaried taxpayers
FULL TEXT OF THE ORDER OF ITAT MUMBAI
