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Facts
The assessee filed appeals against assessment and penalty orders for AY 2009-10, which were confirmed by the CIT(A). The assessee contended that both the assessment and CIT(A) orders were passed ex-parte without affording an opportunity of being heard.
Held
The Tribunal set aside the assessment and CIT(A) orders, remanding the matter to the A.O. for a fresh assessment with proper hearing. The penalty order was deleted, but the A.O. retained liberty to initiate fresh penalty proceedings if warranted by the revised assessment.
Key Issues
Validity of ex-parte assessment and penalty orders passed without providing an opportunity of being heard to the assessee.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH’ SMC’: NEW DELHI
1 & 3048/Del/2023 Vikas Sharma Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH’ SMC’: NEW DELHI BEFORE, SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.3047/Del/2023 (ASSESSMENT YEAR 2009-10) Vikas Sharma Income Tax Officer 16-A/1102, Vasundhara, Ward-1(5), Ghaziabnad, Vs. Ghaziabad Uttar Pradesh Uttar Pradesh PAN-AVJPS8784R (Appellant) (Respondent) (ASSESSMENT YEAR 2009-10) Vikas Sharma Income Tax Officer 16-A/1102, Vasundhara, Ward-1(5), Ghaziabnad, Vs. Ghaziabad Uttar Pradesh Uttar Pradesh PAN-AVJPS8784R (Appellant) (Respondent) Appellant by Shri Tarun Chanana, Adv Respondent by Shri Om Prakash, Sr. DR Date of Hearing 09/05/2024 Date of Pronouncement 10/05/2024 ORDER PER YOGESH KUMAR U.S.JM:
Both the appeals are filed by the Assessee against the order of National Faceless Appeal Centre, Delhi [“NFAC” for short], dated 28/08/2023 for the Assessment Year 2009-10 wherein the Ld. penalty imposed by the A.O.
ITA No.3047/Del/2023 (Quantum Appeal)
The Ld. Counsel for the assessee submitted that both the assessment order and the order of the CIT(A) were passed ex-parte without giving opportunity of being heard to the assessee, therefore, sought for remanding the matter to the file of the A.O. for fresh consideration.
The Ld. Departmental Representative relying on the order of the Lower Authorities sought for dismissal of the Appeal.
We have heard both the parties and perused the material available on record. Considering the fact that both the A.O. as well as CIT(A) have passed orders ex-parte without hearing the assessee, we are of the opinion that if an opportunity of being heard is given to the assessee, the substantial justice would be rendered.
Therefore, we set aside the impugned order of the A.O. as well as CIT(A) and remand the matter to the file of the A.O. for framing the assessment afresh after hearing the assessee in accordance with assessment proceeding. Ordered accordingly.
In the quantum Appeal in we have set aside the assessment order and the order of the Ld. CIT(A) and remanded the matter to the file of A.O. for framing the assessment afresh, therefore, the penalty order passed thereon does not survive accordingly, we delete the impugned penalty. Nevertheless, the A.O. is at liberty to initiate penalty proceedings in accordance with law if he makes the addition while framing the fresh assessment.
Ordered accordingly.
In the result, Appeal in and 3048/Del/2023 are partly allowed for statistical purpose.
Order pronounced in open Court on 10th MAY, 2024