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Facts
The assessee challenged the CIT(A)'s confirmation of an addition of Rs. 7,81,59,033/- made by the Assessing Officer (AO) in an ex-parte order under section 144 of the Income Tax Act. The grievance stemmed from the AO's reliance on the very books of account he had rejected, rather than framing a best judgment assessment based on the assessee's previous history.
Held
The Tribunal found that the matter required re-examination by the AO, concluding that the entire issue should be restored to the AO's file. The AO was directed to decide the issue afresh after providing a reasonable opportunity of being heard to the assessee, who, in turn, must comply with queries and furnish necessary evidence.
Key Issues
Whether the Assessing Officer erred in making an addition based on rejected books of account in an ex-parte assessment under section 144, and if the issue should be restored for fresh adjudication.
Sections Cited
Section 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘F’: NEW DELHI
Before: SHRI N.K. BILLAIYA & MS ASTHA CHANDRA
This appeal by the assessee is preferred against the order of the CIT(A)-24, New Delhi, dated 04.05.2023 pertaining to A.Y. 2018-19.
ITA NO.- 1729/Del/2023 RAV Global Solutions Pvt. Ltd. 2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the addition made by the AO amounting to Rs. 7,81,59,033/- in an ex-parte order framed u/s 144 of the Act.
Entire quarrel revolves around the fact that after rejecting the books of account, the AO proceeded by relying upon certain facts and figures mentioned in the books of account itself. Since he has rejected the books of account, he should have framed the assessment to the best judgment based upon the previous history of the assessee.
Without going into much detail, we are of the considered view that this quarrel needs to be re-examined by the AO by giving fresh hearing to the assessee. We, therefore, restore the entire issue to the file of the AO. The AO is directed to decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee and the assessee is directed to comply with the queries of the AO and furnish necessary evidences in support of his contention.
In the result, appeal of the assessee is allowed for statistical purposes.
ITA NO.- 1729/Del/2023 RAV Global Solutions Pvt. Ltd. Order pronounced in the Open Court on 04.03.2024