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Facts
The assessee's appeal was against an order confirming additions made during reassessment. The assessee claimed they could not effectively present their case before the AO and FAA due to lack of relevant documents and ex-parte proceedings.
Held
The Tribunal held that the assessee was deprived of effectively presenting their case, partly due to not receiving the reasons for reopening under Section 147. Therefore, the matter was remitted to the AO for fresh consideration.
Key Issues
Whether the assessee was provided with adequate opportunity to present their case during reassessment proceedings, and if not, whether the matter should be remanded to the AO.
Sections Cited
143(3), 147
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Income Tax Appellate Tribunal, “C” BENCH, DELHI
Before: MS. MADHUMITA ROY & SHRI AVDHESH KUMAR MISHRA
The instant appeal filed by the assessee is directed against the order dated 03.12.2024 passed by the Ld. Addl/JCIT(A)-2 Hyderabad, arising out of the Assessment Order dated 24.12.2019 passed by the ITO, Ward 3, Hisar, under Section 143(3) read with Section 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2013-14.
At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee submitted before us that at the last stage of the reassessment proceeding initiated under Section 147 of the Act the assessee could appear before the Ld. AO but in the absence of relevant documents the assessee could not argue properly and hence, the reassessment was finalised upon making addition in the hands of the assessee. It was candidly submitted by the Ld. Counsel appearing for the assessee, that before the First Appellate Authority the assessee could not appear and the order passed by the Ld. AO was further confirmed ex- parte. However, he contended that though the assessee sought for the reason recorded by the Ld. AO in reopening the case under Section 147 of the Act on 09.01.2020 admittedly even after the order of reassessment dated 24.12.2019 till date, no copy of the reason recorded by the Ld. AO has been furnished to the assessee. In that view of the matter the assessee to certain extant has been deprived of placing his matter effectively before the authorities below and in the ends of justice he, therefore, prays for remand of the matter to the Ld. AO for consideration afresh. Such prayer made by the Ld. AR has not been controverted by the Ld. DR with all his fairness.
We have heard the Ld. Counsels appearing for the respective parties and having regard to the facts and circumstances of the matter in order to prevent the miscarriage of justice we remit the issue to the file of the Ld. AO for consideration of the same afresh. The Ld. AO is further directed to furnish a copy of the reason recorded by him to the assessee at the very threshold of the second round of litigation before him and to proceed further strictly in accordance with law upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld. AO the said authority would be at liberty to proceed strictly in accordance with law.
The appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 17.07.2025