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Facts
The appellant did not file an Income Tax Return for A.Y. 2011-12. The Assessing Officer, believing the assessee deposited cash of Rs. 25,41,490/-, issued a notice under Section 148. Due to the assessee's failure to reply, an ex-parte assessment was completed under Section 147 read with Section 144, assessing total income at Rs. 25,41,490/-.
Held
The Tribunal found that the lower authorities passed impugned orders without considering material facts, documentary evidence, and submissions, thereby violating principles of natural justice. Consequently, the case is remanded back to the Assessing Officer for fresh adjudication on merit, with explicit instructions to provide the assessee a due opportunity of hearing.
Key Issues
Whether the ex-parte assessment order passed without considering material evidence and violating natural justice is sustainable, and if the lower authorities erred in not deciding the issue on merit.
Sections Cited
144, 147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
Order Per Laliet Kumar, JM : Appeal in this case has been filed by the assessee against the order dated 22.01.2025 passed by the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2011-12. 2. From the grounds of appeal
raised by the Assessee, it is gathered that the main grievance of the Assessee is that the order passed by the Assessing Officer u/s 144 of the 364-Chd-2025 Swaran Singh, Ambala
2. Act is in violation of the principles of natural justice and it has further been submitted that the assessment order is based on incorrect assumption and presumption without appreciating the factual matrix of the case.
3. The brief facts of the case are as under: - The appellant is an individual. The appellant had not filed ITR for A.Y. 2011-2012. The assessing officer had reasons to believe that the assessee deposited cash of amounting to Rs. 25,41,490/-, Subsequently, A notice u/s 148 of the Income Tax act, 1961 dated 29.03.2018 was issued along with various other notices. The assessee failed to give a satisfactory reply and submit the required details. Hence, the A.O. completed the assessment and passed order u/s. 147 r.w.s 144 of the Income-tax Act dated 30.11.2018 Assessing total Income at Rs.25,41,490/-
Being aggrieved by above, the Assessee is in appeal against the assessment order passed under section 147 r.w.s 144 of the IT Act, 1961.
5. None appeared on behalf of the Assessee. However, detailed written submissions dated 4.7.2025 have been filed by the Assessee. From the record and submissions of 364-Chd-2025 Swaran Singh, Ambala 3 the assessee, it appears that the ex-parte assessment order in this case has been passed by the Assessing Officer without considering the documentary evidence produced by the Assessee which is in violation the principle of natural justice, thus, a prayer is made for quashing the assessment order or alternatively to set aside the re-assessment order passed u/s 144 of the Act.
Per Contra, the ld. DR relied on the orders of the authorities below.
We have considered the findings given by the Assessing Officer in the assessment order and the CIT(A) in the appellate order. We have also considered the written submissions of Counsel of the Assessee before us and the submissions of the ld. DR. We find that both the authorities below have passed the impugned orders without considering the material facts, documentary evidences and submissions made by the Assessee during the assessment proceedings as well as during appellate proceedings. Since the issue involved has not been decided by the authorities below on merit by considering 364-Chd-2025 Swaran Singh, Ambala 4 the material available, therefore, in view of the element of natural justice, we are of this considered opinion that the matter should be remanded back to the Assessing Officer for adjudication afresh on merit.
Accordingly, the case is remanded back to the file of the AO for adjudication afresh on merit, by considering the submissions, documentary evidence produced by the Assessee and the relevant material available on record. Needless to say, that the Assessing Officer shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the proceedings before the Assessing Officer. All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, Assessee’s appeal is allowed for Statistical Purposes.]