R R Constructions Vs ITO (ITAT Pune)
VC Hearing Mandatory Once Sought; NFAC Order Set Aside for Breach of Natural Justice – ITAT Pune (SMC)
The Pune SMC Bench of the ITAT, in R R Constructions vs. ITO, Pune (ITA No.2609/PUN/2025, AY 2017-18, order dated 18-12-2025), set aside the order passed by the CIT(A)/NFAC after holding that failure to grant video conference (VC) hearing, despite a specific request by the Assessee, amounted to violation of principles of natural justice.
The Tribunal noted that the Assessee had expressly requested a personal hearing through VC mode, but the CIT(A) proceeded to confirm the addition of ₹27.46 lakh u/s 68 without granting such hearing. Relying on the Madras High Court decision in C. Chellamuthu vs. Pr. CIT (NFAC) and the Bombay High Court ruling in Pico Capital (P.) Ltd. vs. DCIT, the ITAT reiterated that once VC hearing is sought, granting the same is mandatory, and denial thereof vitiates the appellate order.
Accordingly, the ITAT set aside the CIT(A)’s order and restored the matter for de-novo adjudication, with a specific direction to provide the Assessee an opportunity of video conference hearing. Since the matter was remanded on procedural grounds, the issues on merits relating to income enhancement and cash deposit addition were left open and unadjudicated. The appeal was thus partly allowed
FULL TEXT OF THE ORDER OF ITAT PUNE
