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Facts
A search was conducted on Royal Oak Furniture LLP, leading to a notice under Section 153C of the Act being issued to the assessee. The Assessing Officer (AO) made an addition of Rs. 18 lakhs under Section 69A of the Act. The assessee alleges that the AO did not grant a personal hearing before completing the assessment.
Held
The Tribunal held that the assessee was not granted a personal hearing despite a request. The Tribunal remitted the issue back to the jurisdictional AO to provide a reasonable opportunity for a personal hearing and decide the case afresh.
Key Issues
Whether the assessee was denied a proper opportunity for a personal hearing during the assessment proceedings.
Sections Cited
153C, 69A, 143(3)
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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY
Per Laxmi Prasad Sahu, Accountant Member :
This is an appeal filed by the assessee against CIT(A)’s order vide DIN & Order No: ITBA/APL/M/250/2024-25/1072618632(1) dated 28.01.2025.
Briefly stated, the facts of the case are that pursuant to the search carried out in the case of Royal Oak Furniture LLP on 14.11.2019, a notice under section 153C of the Act dated 14.06.2021 was issued to the assessee after following due procedure and other statutory notices were issued to the assessee. The assessee furnished reply from time to time which were considered by the AO and made addition of Rs.18 lakhs under section 69A of the Act.
Aggrieved from the above Order, assessee filed appeal before the learned CIT(A) and learned CIT(A) dismissed appeal of the assessee.
Aggrieved from the above Order, assessee filed appeal before the Tribunal. At the outset of hearing, the learned Counsel submitted that during the course of assessment proceedings, a letter was filed before the DCIT, Central Circle – 1(1), 3rd Floor, CR Building on 17.02.2022 vide letter dated 05.02.20922 and it was requested that a personal hearing be permitted but the AO did not grant personal hearing and completed the assessment and the AO has considered the letter and reproduced the same in Assessment Order from Page Nos.4 to 6 and he submitted that in the previous Assessment Years 2018- 19, 2019-20 and 2020-21 the return income was accepted s accepted by the department and he asked for telescopy of previous year’s income which were accepted by the department.
The learned DR relied on the Order of the lower authorities.
Considering the rival submissions and application filed by the assessee for personal hearing, the letter filed by the assessee has been reproduced by the AO but no personal hearing has been granted to the assessee. Considering the facts of the case and in the interest of justice, the personal hearing shall be granted to the assessee by the jurisdictional AO. Accordingly, we remit this issue back to the file of jurisdictional AO for deciding afresh after giving reasonable opportunity of being heard (personal hearing) to the assessee and assessee is directed to submit necessary documents to substantiate his case and not to seek unnecessary adjournment for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.