Loading judgment…
Facts
The assessee filed appeals against orders passed by the CIT(A) for assessment years 2014-15 and 2015-16. The assessee contended that the CIT(A) passed the orders without affording a reasonable opportunity of hearing and that necessary documents were not considered by the AO.
Held
The Tribunal noted that the quantum appeals were passed without providing a reasonable opportunity of hearing to the assessee. The assessee's plea for one more opportunity to produce documents was considered. The penalty levied under section 271(1)(b) was also linked to the restored quantum proceedings.
Key Issues
Whether the assessment orders were passed without affording a reasonable opportunity of hearing to the assessee, and if the penalty levied under section 271(1)(b) is valid in light of the restored quantum proceedings.
Sections Cited
147, 144, 271(1)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,
Before: SHRI DUVVURU RL REDDY(KZ) RL REDDY(KZ)
At the time of hearing, ld AR submitted that the ld CIT(A) has passed the order without affording reasonable opportunity to the assessee for both the assessment years. Ld AR before me produced a paper book containing 205 pages and submitted that these were produced before the AO through the department portal. He submitted that all the relevant documents were filed before the AO but the same were not considered. He submitted that if one more opportunity is given, the assessee would co- operate in set aside proceedings before the Jurisdictional Assessing Officer by filing necessary documentary evidences in support of the claim.
In reply, ld Sr DR submitted that enough opportunities have been granted to the assessee and the AO has passed the order by considering all the facts of the case.
I have heard the rival contentions and perused the material available on record. It is noticed that the quantum appeals for the assessment years 2015-16 & 2014-15 have been passed without affording reasonable opportunity of hearing to the assessee and the assessment orders have P a g e 2 | 4 Assessment Year : 2015-16 Assessment Year : 2015-16 Assessment Year : 2014-15 been passed u/s.147/144 of the Act due to non-compliance of the notices issued by the AO. The contention of the ld AR is that all the documentary evidences were produced before the AO. Now, the ld AR has prayed that if one more opportunity is granted, the assessee will produce all the relevant documents and evidences in support of its claim. Considering the facts and circumstances of the case, the issues in both the quantum appeals are restored to the file of the Jurisdictional Assessing Officer for fresh adjudication after providing reasonable opportunity of hearing to the assessee.
With regard to penalty levied u/s.271(1)(b) of the Act, I am of the view that in view of the restoration of the issue in quantum proceedings for the assessment year 2015-16, the instant penalties on such restored issue are also sent back to the AO for taking an appropriate decision after the finalization of the fresh assessment on the set aside proceedings.
In the result, appeals of the assessee stands allowed for statistical purposes.
Order dictated and pronounced in the open court on 30/06/2025.