Loading judgment…
Facts
The assessee did not appear before the Assessing Officer (AO) due to Covid-19 and medical treatment, leading to a best judgment assessment under Section 144 read with Section 147 of the Income Tax Act, 1961. The CIT(A) upheld the AO's action.
Held
The Tribunal set aside the impugned order, restoring the appeal to the AO for a denovo assessment. The assessee was directed to present all evidence and documentation, while the AO was granted liberty to proceed if the assessee failed to comply.
Key Issues
Whether the assessee was provided with sufficient opportunity for a fair hearing, and whether the principles of natural justice were adhered to during the assessment proceedings.
Sections Cited
144, 147, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ (SMC
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2012-2013) Raheem Malik, Vs. The Income Tax Officer, No.1/42A, Kmamandhal Road, Ward 1, Kallakuruchi, Villupuram 606 202. Villupuram 606 202. [PAN: BJCPM 8150M] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri. V. Padmanabhan, C.A., ��यथ� क� ओर से /Respondent by : Ms. R. Kavitha, Addl. CIT. सुनवाई क� तार�ख/Date of Hearing : 18.12.2024 घोषणा क� तार�ख /Date of Pronouncement : 13.01.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1065262123(1) dated 30.05.2024. The assessment was framed by the Income Tax Officer, Ward 1, Villupuram for the assessment year 2012-13 u/s.144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 28.09.2021.
Before us, the ld. Authorized Representative submitted that notices were received when the assessee and his family members were diagnosed with Covid- 19 and was under medical treatment. Further, assessee was under home quarantined and hence, could not reply to the notices. However, the ld. Assessing Officer completed the assessment u/s.144 r.w.s. 147 of the Act on 30.09.2021 making an addition under section 69A amounting to INR 31,14,000/- and also added a sum of Rs. 5,264/- to total income as income from other sources. The ld. AR argued that assessee carried the matter before the ld. CIT(A), however the ld. CIT(A) confirmed the action of the ld.Assessing Officer. The ld. Counsel for assessee submitted that the AO has not given sufficient time to file evidence and documents to substantiate his explanation and requested to send the appeal back to the file of the Assessing Officer for fresh adjudication. On the other hand, the ld. Departmental Representative argued that the assessee were given opportunities to substantiate its case before the ld. AO, however, assessee has not utilized the opportunity and hence he prayed that no lenient view is to be taken in this case and prayed for dismissal of appeal.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld. AO despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 13th day of January, 2025.