ANSAR AHMED KHAN, HYDERABAD,HYDERABAD vs. ITO, WARD-4(2), HYDERABAD, HYDERABAD

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ITA 686/HYD/2017Status: DisposedITAT Hyderabad26 November 2020AY 2010-113 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of justice, decided to remand the issue to the AO for a fresh assessment. The assessee is to be given a fair opportunity to present their case.

What were the facts?

The assessee failed to appear before the AO and CIT(A) during assessment and rectification proceedings. Consequently, ex-parte orders were passed, leading to additions for short-term capital gains and unexplained investments.

What were the issues?

Whether the assessee should be given an opportunity to present their case before the lower authorities due to non-appearance, and if so, whether the matter should be remanded for denovo assessment.

Which sections of the Income-tax Act were involved?

Section 154,Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

For Assessee : Shri Mohd. Afzal For Revenue : Shri Sunil Kumar Pandey Date of Hearing : 23-11-2020 Date of Pronouncement : 26-11-2020 O R D E R PER P. MADHAVI DEVI, J.M. :

This is an appeal of the assessee for the AY 2010-11 against the order of CIT(A) – 1, Guntur, confirming the order passed by the AO u/s 154 of the IT Act.

2.

At the time of hearing, it is noticed that none appeared on behalf of the assessee before the AO during the proceedings u/s 154 of the Act or during the assessment proceedings u/s 144 r.w.s 147 of the Act. Even before the CIT(A), none appeared for the :- 2 -: Ansar Ahmed Khan, Hyd.

assessee, due to which, the CIT(A) has confirmed the assessment order and the order passed u/s 154 of the Act. Against such order of the CIT(A), the assessee is in appeal before the Tribunal.

3.

Before us, the ld. counsel for the assessee submitted that due to unavoidable circumstances, the assessee could not appear before the AO and, therefore, he prayed for an opportunity to present his case before the AO.

4.

The ld. DR was also heard, who opposed the remand of the issue to the AO.

5.

Having regard to the rival contentions and the material on record, we find that the AO has brought the short-term capital gains and unexplained investments to tax and during 154 proceedings, further addition of Rs. 37,82,500/- was made towards the difference amount of unexplained investment. Since the assessee did not appear before the AO and CIT(A), exparte orders have been passed by the lower authorities. In order to give an opportunity to the assessee to present his case before the lower authorities and in the interest of justice, we deem it fit and proper to remand the issue to the file of AO for denovo assessment in accordance with law. Needless to mention that the assessee shall be given fair opportunity of hearing and the :- 3 -: Ansar Ahmed Khan, Hyd.

assessee is directed to cooperate with the AO for early completion of the assessment.

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