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Facts
The assessee challenged an assessment order for AY 2012-13, made under Section 144/147, which included an addition of Rs.37,92,000/- under Section 50 as unexplained capital gain. The assessee's representative claimed they were unable to appear before the lower authorities, and the CIT(A) also did not provide an opportunity to present the case.
Held
The Tribunal observed that the assessee was denied a proper opportunity of being heard, violating principles of fair play. Consequently, the matter was set aside to the Assessing Officer for fresh consideration on merits, with a clear direction to provide the assessee a full opportunity to be heard and present all relevant material and evidence.
Key Issues
Whether the assessee was granted a reasonable opportunity of being heard by the lower authorities before finalizing the assessment and making an addition of unexplained capital gain under Section 50.
Sections Cited
Section 144 of the Income Tax Act, 1961, Section 147 of the Income Tax Act, 1961, Section 50 of the Income Tax Act, 1961
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 dated 22.09.2023 passed by the CIT(A) National Faceless Appeal Centre (NFAC), Delhi, arising out of the Assessment order dated 24.10.2019 passed by the ITO, Ward-2(1)(3) Ghaziabad, Under Section 144/147 of the Income Tax Act (hereinafter referred to as ‘the Act’) for Assessment Year 2012-13.
At the time of hearing of the instant appeal, it was submitted by the Learned AR appearing for the assessee that she could not appear before the authorities below and hence assessment was finalized upon making Jaya Devi Vs. ITO, ward 1(3) addition of Rs.37,92,000/- under Section 50 of the Income Tax Act, 1961 as unexplained capital gain.
Ld. CIT(Appeals), in fact, did not give any chance to the assessee to represent its case before him, which has not been controverted by the Learned DR with all his fairness. Hence, keeping in view the principles of fair play, in my considered opinion, the assessee be given a further opportunity of being heard before the authorities below to represent its case effectively. The issue is, therefore, set aside to the file of the Learned Assessing Officer for his consideration afresh on merit upon granting an opportunity of being heard to the assessee and upon considering the relevant material on record and also upon considering the evidence which the assessee may chose to file at the time of hearing of the matter and to pass a reasoned order.
The assessee’s appeal is, thus, allowed for statistical purposes.
Order pronounced in the open court on 29.10.2024