Virtual hearing rights in faceless income-tax appeals require an effective oral opportunity; written submissions alone are insufficient.

A requested virtual hearing in a faceless income-tax appeal is necessary to provide an effective opportunity of being heard. Written submissions, adjournment requests and the appeal memorandum cannot replace an oral or personal hearing. Where no virtual hearing is provided and no video-conferencing link is communicated despite the request, the assessee is deprived of the opportunity to explain the transactions, resulting in a failure of natural justice. The appellate disposal was therefore set aside in favour of the assessee.

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Issues: Whether disposal of a faceless income-tax appeal without providing the requested virtual hearing violates principles of natural justice.

Analysis: Appellate hearing presupposes an opportunity for the assessee or authorised representative to be heard physically or through a virtual mode. Written submissions, adjournment requests and the appeal memorandum cannot substitute an oral or personal hearing. Although hearing notices had been issued and written submissions were filed, the requested virtual hearing was admittedly not provided, nor was any video-conferencing link communicated. This deprived the assessee of an effective opportunity to explain the transactions and resulted in failure of justice.

Conclusion: Disposal of the appeal without providing the requested virtual hearing violated principles of natural justice and was set aside in favour of the assessee.

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