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Facts
The assessee appealed against an addition of Rs. 29,80,450/- confirmed by the CIT(A) for AY 2012-13, arguing that the AO's order was ex-parte and their reply regarding maintainability of proceedings under Section 147/148 and merits was not considered. They also sought to admit fresh evidences which were not available at earlier stages.
Held
The Tribunal admitted the fresh evidences and quashed the impugned orders, remanding the matter to the Assessing Officer for fresh adjudication. The AO is directed to provide a proper opportunity of hearing to the assessee and pass a reasoned order considering all evidence.
Key Issues
Validity of ex-parte addition and confirmation; Admissibility of fresh evidence; Maintainability of Section 147/148 proceedings; Right to adequate opportunity of hearing.
Sections Cited
Section 147, Section 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, DELHI
Before: MS. MADHUMITA ROY
The instant appeal filed by the assessee is directed against the order passed by the Ld. CIT(A) Delhi, dated 12.09.2023 arising out of the order passed by Ld. ITO, Ward-1(1), Faridabad, Haryana, whereby and whereunder the addition made by the Ld. AO to the tune of Rs.29,80,450/- has been confirmed for Assessment Year 2012-13.
Alleppy Chits and Profits P. Ltd. Vs. ITO, Ward 1(1) 2. At the time of hearing of the instant appeal, the Ld. Counsel appearing for the assessee submitted before us that the order passed by the ld. AO is ex-parte one and further confirmation of the said order by the First Appellate Authority is made without considering the reply submitted by the assessee both in regard to the maintainability of the proceeding under Section147/148 of the Act and also on merit. With all his fairness, it was further submitted by the Ld. A.R that the documents mainly the bank statement of the assessee, the inspection request to the Ld. AO and the reason recorded by the Assessing Officer for issuance of notice under Section 148 of the Act are the fresh evidences filed before us and the same were since, not available with the appellant, could not be filed before the authorities below. As the evidences are required to be considered for proper adjudication of the matter which goes to the root of the matters the same be admitted by us and the assessee be given a further opportunity to be heard by the authorities below in order to enable the assessee to represent its case effectively. Such prayer made by the assessee’s counsel has not been controverted by the Ld. D.R with all his fairness.
Having heard the Ld. Counsels appearing for the parties and having regard to the facts and circumstances of the matter, the additional evidences are hereby admitted as the reason for not been able to file before the authorities below by the appellant seems to be genuine. Further that in order to prevent the miscarriage of justice this issue is required to be adjudicated by the authorities below afresh upon granting an opportunity of being heard to the assessee.
Alleppy Chits and Profits P. Ltd. Vs. ITO, Ward 1(1) In that view of the matter, the order impugned is quashed and the issue is set aside to the file of the Ld. AO for adjudication of the same afresh upon considering the evidence on record, the additional evidence placed before us and any other evidence which the assessee may choose to file at the time of hearing of the matter. The Ld. A.O is further directed to grant an opportunity of being heard to the assessee sand to pass a reasoned order. It is also made clear that in the event the assessee does not cooperate with the Ld. A.O the said authority would be at liberty to decide the appeal strictly in accordance with law.
Assessee’s appeal is, thus, allowed for statistical purposes.
Order pronounced in the open court on 07.11.2024