RAJESH MALIK,ROHTAK (HARYANA) vs. ITO WARD-5 ROHTAK, ROHTAK (HARYANA)

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ITA 1742/DEL/2022Status: HeardITAT Delhi20 September 2022AY 2012-134 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. Considering the lack of effective representation and to uphold principles of natural justice, the matter was set aside and restored to the Assessing Officer for a fresh assessment after providing the assessee a reasonable opportunity to present their case.

What were the facts?

The assessee's appeal was filed late due to the negligence of the Chartered Accountant's clerk. The assessee argued that there was no effective representation before the Assessing Officer, leading to an ex-parte order under Section 144 read with Section 147.

What were the issues?

Whether the reassessment proceedings and order were valid when the assessee lacked effective representation and whether principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI

Before: SHRI KUL BHARAT

Hearing: 20.09.2022Pronounced: 20.09.2022

O R D E R PER KUL BHARAT, JM:

This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre 9NFAC), Delhi, dated 16.07.2021, pertaining to the assessment year 2012-13. The assessee has raised following grounds of appeal:

“1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad, both in the eye of law and on the facts. 2. On the facts and circumstance of the case the order passed by the learned CIT(A) is bad both in the eyes of law and on facts as the same has been passed without giving any finding on the merits of the case.

Rajesh Malik Vs. ITO 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the initiation of the reassessment proceedings and the reassessment order are bad both on facts and in law and liable to be quashed as the statutory conditions and procedure prescribed under the statute have not been complied with.

4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the reassessment order passed by the A.O. is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and has been recorded without application of mind on the part of the A.O.

5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts & in law in confirming the addition of Rs.l 1,15,000/- on account of deposits in the bank.

6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts & in law in confirming the addition despite the fact that AO has passed the order without providing reasonable opportunity of being heard to the assessee.

7. The appellant craves leave to add, amend or alter any of the grounds of appeal.”

2.

The present appeal is barred by limitation. The assessee has filed an application seeking condonation of delay. It is stated that the order was passed by the learned CIT(Appeals) on 16.7.2021 and received by the assessee on the same date. The assessee had handed over the order to the clerk working in the office of the Chartered Accountant for filing the appeal. However, the clerk kept the order with him and therefore the appeal could not be filed.

3.

Learned Sr. DR opposed the submissions and submitted that the assessee has Rajesh Malik Vs. ITO been negligent in not filing the appeal in time.

4.

I have heard learned authorized representatives of the parties and perused the material available on record. Considering the totality of the facts and the submissions made by the assessee that the appeal could not be filed due to the negligence of the staff of the Chartered Accountant, the delay in filing the appeal is condoned and the appeal is take up for hearing on merits.

5.

Learned counsel for the assessee submitted that there was no effective representation on behalf of the assessee before the Assessing officer. Therefore, the order was passed u/s 144 read with section 147 of the Act. Learned counsel submitted that in the interest of principles of natural justice an opportunity be given to the assessee for representing his case before the assessing authority.

6.

On the contrary learned Sr. DR supported the orders of the authorities below.

7.

I have heard learned authorized representatives of the parties and perused the material available on record. Considering the fact that assessee did not have effective representative before the Assessing officer and to sub-serve the principles of natural justice it is deemed fit and proper to set aside the orders of the authorities below and restore the matter to the file of the Assessing Officer for decision afresh after affording reasonable opportunity to the assessee to represent his case. The impugned order is, therefore set aside and assessment is restored to the file of Assessing Officer for assessment afresh. The grounds raised by the assessee are Rajesh Malik Vs. ITO allowed for statistical purpose.

8.

Assessee’s appeal is allowed for statistical purposes.

Order pronounced in open court on 20.09.2022.

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