2025 (12) TMI 1273 - AT - Income Tax

Video-conference personal hearing request in faceless tax appeal under s. 250 denied; appellate order set aside, case remanded.

The dominant issue was whether the first appellate order under s. 250 was vitiated for breach of natural justice due to denial of a requested personal ... Validity of appellate order u/s 250 - no opportunity of personal hearing through video conferencing was granted by the CIT(A) - HELD THAT:- As, it is evident from the record that the assessee, though made the request to the learned CIT(A) for grant of opportunity for personal hearing through the National Faceless Appeal Centre, the same was not granted to the assessee. Therefore, in view of the above, we deem it appropriate to restore the appeal to the file of the learned CIT(A) for de novo adjudication after granting the opportunity to the assessee for personal hearing as per the Faceless Appeal Scheme, 2021. The assessee can make a fresh request in this regard as per the aforesaid clause (12) of the Faceless Appeal Scheme, 2021. Issues: Whether the appeal should be restored to the Commissioner (Appeals) for de novo adjudication because the assessee's request for personal hearing through the Faceless Appeal Scheme, 2021 was not granted, thereby violating principles of natural justice.Analysis: The Faceless Appeal Scheme, 2021 provides that an appellant or authorised representative may request a personal hearing and the Commissioner (Appeals) shall allow such request and communicate date and time for a hearing to be conducted through video conferencing to the extent technologically feasible; suitable facilities are to be made available so that an appellant is not denied the benefit on account of lack of access. The record shows the assessee made a request for personal hearing via the National Faceless Appeal Centre which was not granted. The appellate authority's impugned order proceeded without affording the requested opportunity of personal hearing, and in such circumstances restoration for fresh consideration is appropriate to ensure compliance with the Scheme and the audi alteram partem principle. The Tribunal directed de novo adjudication by the Commissioner (Appeals) after granting the opportunity for personal hearing and set aside the impugned order; other substantive grievances were held not to be adjudicated at this stage.Conclusion: The appeal is restored to the file of the Commissioner (Appeals) for de novo adjudication after granting the assessee an opportunity of personal hearing under the Faceless Appeal Scheme, 2021; the impugned order is set aside and the appeal is allowed for statistical purposes.