ARUMUGASAMY GOPALAKRISHNAN,CHENNAI vs. ITO NON CORPORATE WARD 4(4), CHENNAI

This is an appeal filed by the assessee directed against the order of the learned Commissioner of Income Tax (Appeals)-5, Chennai (hereinafter called as ‘CIT(A)’) in dated 24.01.2019 for the assessment year 2011-12.

It was submitted by the learned Authorized Representative that the Assessing Officer has relied upon the statement from Shri Kushal Raj for making the addition in the hands of the assessee. It was a submission that the said statement of Shri Kushal Raj was not provided to the assessee. It was a submission that even before the learned Commissioner of Income Tax (Appeals) the copy of the statement from Shri Kushal Raj was requested and the appeal was posted on multiple occasions for providing the assessee a copy of the statement recorded from Shri Kushal Raj. However, without providing the statement, the learned Commissioner of Income Tax (Appeals) has dismissed the assessee’s appeal for non-prosecution of the appeal. It was a submission that the Assessing Officer may be directed to grant the assessee the benefit of the copy of the statement recorded from Shri Kushal Raj and the issue restored to the file of the Assessing Officer for re-adjudication denovo.

The learned Department Representative was requested to furnish a copy of the statement recorded from Shri Kushal Raj. The learned Departmental Representative has today provided a copy of the letter written by Shri Kushal Raj to the Assessing Officer along with copies of two promissory notes for an amount of Rs.20.00 lakhs and another for Rs.20.00 lakhs respectively. It was fairly agreed by the learned Departmental Representative

We have considered the rival submission and perused the materials available on record.

The so-called statement given by Shri Kushal Raj have been provided to the assessee and the principles of natural justice have been complied with. As violation of the principles of natural justice took place at the point of time when the issue was before the Assessing Officer, in the interest of natural justice, the issues in the appeal are restored to the file of the Assessing Officer for re- adjudication denovo after granting the assessee adequate opportunity of being heard.

In the result, the appeal of the assessee is partly allowed for statistical purposes.