Case Law Details
Abhishek Shaw Vs ITO (ITAT Kolkata)
Introduction: The recent case of Abhishek Shaw Vs ITO, adjudicated by the Kolkata Income Tax Appellate Tribunal (ITAT), delves into the implications of lapses within the faceless assessment regime. This article examines the proceedings, analyses the arguments presented, and evaluates the ITAT’s decision.
Detailed Analysis: The appeal stemmed from the order of the National Faceless Appeal Centre (NFAC), Delhi, against the Assessment order by the Income Tax Officer (ITO), Ward-50(6), Kolkata, under section 144 of the Income-tax Act, 1961. The appellant raised concerns regarding the ex-parte nature of the appeal order issued by the Ld. CIT(A) without considering the adjournment request. The grounds for appeal revolved around procedural irregularities and the addition of Rs.11,51,000/- due to cash deposits during the demonetization period.
Despite the absence of the assessee during the assessment and appellate proceedings, the ITAT recognized the challenges posed by the nascent faceless assessment regime. Acknowledging the teething problems, the ITAT emphasized the importance of not prejudicing effective administration due to procedural lapses. It advocated for a lenient approach, considering the newness of the faceless regime.
The ITAT’s decision to remit the matter back to the Ld. AO for a fresh assessment underscores the need for a fair and comprehensive evaluation. It directs the AO to afford the assessee reasonable opportunities for representation and submission, ensuring procedural fairness.
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