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Facts
The assessee appealed against a reassessment order for AY 2013-14, completed under Section 147 read with Section 144B, where the Assessing Officer proceeded ex-parte due to non-compliance with notices. The assessee also failed to appear before the CIT(A), who confirmed the AO's order. Before the ITAT, the assessee contended that the reassessment was not maintainable as the issue of interest claimed against rental income from house property had been considered in the original assessment.
Held
The Tribunal acknowledged the assessee's non-representation before lower authorities but, to prevent a miscarriage of justice, set aside the CIT(A)'s order. The matter was remitted back to the CIT(A) to provide the assessee a fresh opportunity of hearing on all issues, including the maintainability of the reassessment proceedings under Section 147 of the Act.
Key Issues
Whether reassessment proceedings under Section 147/148 are maintainable when the specific issue was already considered in the original assessment; Whether the assessee should be granted a fresh opportunity of hearing before the CIT(A) despite non-representation at earlier stages.
Sections Cited
Section 250, Section 147, Section 144B, Section 142(1), Section 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: MS. MADHUMITA ROY & SH. AVDHESH KUMAR MISHRA
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER AND SH. AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER I.T.A. No. 3042/Del/2023 (Assessment Year : 2013-14) Benzi Inapex Pvt. Ltd. Vs. DCIT Prop No.558-A, 1st Floor, Circle – 4(2) Left Portion, Silver Oak New Delhi Mark, Vill-Ghitroni, Near Bakshi Farm, South West Delhi, Delhi-110 030 PAN: AABCB 9142 Q (Appellant) .. (Respondent) Appellant by : Shri Sanjay Sood, FCA Respondent by : Shri Kanv Bali, Sr. D.R. Date of Hearing 22.05.2024 Date of Pronouncement 28.05.2024 O R D E R PER MS. MADHUMITA ROY – JUDICIAL MEMBER :
The instant appeal filed by the assessee is directed against the order dated 29.08.2023 passed by the Commissioner of Income Tax (Appeals), NFAC - Delhi under Section 250 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) arising out of the assessment order dated 30.03.2022 passed by the Assessing Officer (‘the AO’) under Section 147 read with Section 144B of the Act for the Assessment Year (A.Y.) 2013-14.
ITA No.3042/Del/2023 Benzi Inapex Pvt. Ltd. vs. DCIT Asst.Year – 2013-14 - 2 - 2. We have heard the Learned Counsels appearing for the parties, we have also perused the relevant materials available on record.
In fact, the Assessing Officer has completed the assessment under Section 147 read with Section 144B of the Act on the basis of the documents / information available on record as the assessee did not comply with the notices issued under Section 142(1) of the Act by furnishing required information / documentary evidences as asked for. Even before the First Appellate Authority, the assessee did not appear though several opportunities were provided to it. Having no other alternatives, the Learned CIT(A) proceeded with the file and finalized the same, confirming the order passed by the Learned AO.
However, before us, at the time of hearing of the instant appeal, the assessee has argued on the point of maintainability of the assessment completed under Section 148 of the Act dated 30.03.2022. The case of the assessee is this that the complete details of claim of interest against rental income from house property were since considered in original assessment proceedings, the reassessment on the same issue under Section 147 of the Act is not sustainable in eye of law having no basis and, therefore, liable to be struck down. This particular issue was raised before the Learned CIT(A) by the assessee but as the assessee not found to be represented before him, the Learned CIT(A) finalized the issue on merit including this ground of maintainability raised before against the assessee. Learned AR, thus, prays for a further opportunity of being
ITA No.3042/Del/2023 Benzi Inapex Pvt. Ltd. vs. DCIT Asst.Year – 2013-14 - 3 - heard by the Learned CIT(A) for ends of justice. Such prayer has not been objected by the Learned DR with all his fairness.
Having heard the Learned Counsel appearing for the parties and having regard to the facts and circumstances of the case, we find that for some reasons or the other, the assessee has not been able to represent before the authorities below though several opportunities were given to it. However, in order to prevent the miscarriage of justice, we find that the assessee may be given a further opportunity of hearing by the Learned CIT(A) on the issue involved in this matter including the ground of maintainability. Thus, we set aside the order passed by the Learned CIT(A) and remit the same to the file of Learned CIT(A) to adjudicate the issue involved in the matter upon giving opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence, which the assessee may choose to file at the time of hearing of appeal. We also make it clear that all points raised by the appellant are kept open including the point of maintainability of the proceedings initiated against the appellant under Section 147 of the Act.
In the result, appeal of the assessee allowed for statistical purposes.
This Order pronounced in Open Court on 28/05/2024
Sd/- Sd/- (AVDHESH KUMAR MISHRA) (Ms. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 28/05/2024
ITA No.3042/Del/2023 Benzi Inapex Pvt. Ltd. vs. DCIT Asst.Year – 2013-14 - 4 - Priti Yadav, Sr.PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI