Appellate Tribunal overturns Commissioner's decision for lack of personal hearing, in line with Faceless Appeal Scheme.

The Appellate Tribunal allowed the appeal by the assessee challenging the order under the Income Tax Act, 1961. The Tribunal found that the Commissioner of Income Tax (Appeals) erred in dismissing the appeal without granting a personal hearing, violating the Faceless Appeal Scheme, 2021. The impugned order was set aside, and the appeal was directed to be restored for de novo adjudication after granting the opportunity for personal hearing. The appeal by the assessee was allowed for statistical purposes.

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Issues involved:
The appeal challenging the order u/s 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals) is raised by the assessee for the assessment year 2020-21.

Ground 1:
The Commissioner of Income Tax (Appeals) erred in dismissing the appeal without granting a personal hearing despite multiple requests made by the Appellant.

Ground 2:
The Commissioner of Income Tax (Appeals) erred in dismissing the appeal based on the correctness of the intimation u/s 143(1)(a) without considering that expenses were already disallowed by the Appellant in its Return of Income.

Ground 3:
The Intimation Order passed by the Assistant Director of Income-tax assessing the total loss of the Appellant is challenged as bad in law and liable to be quashed.

Ground 4:
Disallowance of an amount on account of inconsistency in Expenditure of capital nature is contested, with the Appellant arguing that the said expenditure was duly considered in the tax return.

Ground 5:
Disallowance of an amount on account of inconsistency in Expenditure by way of penalty or fine is disputed, with the Appellant asserting that the said expenditure was duly considered in the tax return.

Summary of Judgement:
The Appellate Tribunal found that the Commissioner of Income Tax (Appeals) did not grant the opportunity for personal hearing as requested by the assessee, which was a violation of the Faceless Appeal Scheme, 2021. The Tribunal set aside the impugned order and directed the appeal to be restored for de novo adjudication after granting the opportunity for personal hearing in accordance with the Scheme. The appeal by the assessee was allowed for statistical purposes.

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