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Facts
The assessee filed an appeal against an NFAC order related to A.Y. 2012-13. The assessee contended that books of account, tax audit report, and audited balance sheet could not be filed during the assessment proceedings due to the non-cooperation of the previous Chartered Accountant, leading to an ex-parte order. The assessee claimed to now possess all requisite documents and sought admission of additional evidence.
Held
The Tribunal found that the assessee had sufficient cause for the delayed production of documents. Consequently, in the interest of justice, the issues were restored to the Assessing Officer for fresh adjudication. The Assessing Officer was directed to provide a reasonable opportunity of being heard, and the assessee was directed to submit necessary information/documents.
Key Issues
Whether the non-submission of financial documents during assessment proceedings due to a previous CA's non-cooperation constitutes sufficient cause, warranting a remand for fresh adjudication by the Assessing Officer.
Sections Cited
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Income Tax Appellate Tribunal, DELHI ‘E’ BENCH,
Before: SHRI SAKTIJIT DEY, & SHRI NAVEEN CHANDRA
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-
This appeal by the assessee is preferred against the orderof the NFAC, Delhidated 15.06.2023pertaining to A.Y. 2012-13.
At the very outset, the ld. counsel for the assessee relied on the application dated 09.03.2016 wherein it was contended that the paper book, tax audit report and audited balance sheet could not be filed during the assessment proceedings for the year ended 31.03.2012 due to the non-cooperation of the earlier Chartered Accountant.
The ld. counsel for the assessee further contended that Books of Account, Cash Book, Bank Book, Ledger, Journal were not made available to the assessee by the earlier CA and hence the assessee could not submit the same during the assessment proceedings.
Therefore, the ld. counsel for the assessee submitted that the assessee was prevented by sufficient cause for furnishing the necessary documents as required by the Assessing Officer during the assessment proceedings.
Now, the ld. counsel for the assessee before us has contended that all the requisite documents were available with the assessee and requested for admission of additional evidence u/s 46A of the I.T.
Rules and remand the matter to the Assessing Officer.
The ld. DR raised no serious objection.
Having heard the rival submissions, we are of the considered view that the assessee was prevented by sufficient cause in not producing the documents as required by the Assessing Officer during the assessment proceedings, which resulted in ex-parte order by the first appellate authority. Therefore, in the interest of justice and fair play, we deem it fit to restore the issues to the file of the ld. Assessing Officer.
The Assessing Officer is directed to decide the issues afresh after affording a reasonable and adequate opportunity of being heard to the assessee. The assessee is also directed to provide necessary information/documents as required by the authorities.
In the result, the appeal of the assessee in is allowed for statistical purposes.
The order is pronounced in the open court on 25.04.2024.