GUNEET KAUR CHADHA,DELHI vs. ITO WARD-12(2), DELHI

One of the most crucial issue raised by the assessee is challenging the violation of principles of natural justice by the Learned CIT(A) in not admitting the additional evidences. Since this goes to the root of the matter, we deem it fit to address the said issue first.

We have heard the rival submissions and perused the materials available on record. The assessee is an individual and had filed a return of income for Assessment Year 2020-21 on 27-12-2020 declaring total income of Rs. 23,52,980/-. The ld AO during the course of assessment proceedings issued a show-cause notice containing the draft assessment order dated 21- 03-2022 show-causing the assessee as to why the disallowance of deduction claimed under Section 57(iii) of the Act in the sum of Rs. 55,00,216/- be not made in the assessment. The due date set for compliance to the said show-cause notice was 22-03-2022. The assessee was given less than 24 hours to file her reply in this regard. The assessee filed an adjournment letter dated 5-04-2022 on medical grounds. The copy of medical certificate from a doctor evidencing the ill health of the assessee was also uploaded along with the adjournment letter. After no communication was received from the officer to the adjournment letter filed by the assessee. Thereafter, the portal of the assessee was blocked by the Learned AO between 6-04-2022 to 29-08-2022. Hence, assessee could not file her replies during this period. Further, the option of filing any reply was also closed by the Learned AO in the portal on 5-09-2022. Thereafter, another show-cause notice dated 29-08-2022 was issued by the Learned AO. The assessee was given time till 5-09-2022 to reply to the same. In reply, a letter dated 5-09-2022 was filed by the authorised representative of the assessee seeking a short adjournment as there was bereavement in the family being the death of mother of authorised representative. It was also submitted before the Learned AO that the reply to the show-cause notice would be filed on or before 11-09-2022. The assessee however, filed a detailed reply to the show-cause notice issued by the Learned AO and wanted to upload the reply on 11-09-2022 on the income tax portal, by which time the button for ‘submit response’ to the notice dated 29-08-2022 was deactivated by the Learned AO. Hence, the assessee could not file the Mrs. Guneet Kaur Chadha requisite details before the Learned AO, which culminated in the framing of assessment order on 13-09-2022 determining the total income of the assessee at Rs. 78,55,096/-. In fact, the assessee also raised a grievance in this regard vide Grievance Acknowledgement No. 8232028 at 6.33 am on 11-09-2022 itself stating that she was not able to upload the reply sought for by the Learned AO. Later, the assessee also had sent a detailed reply to the official email of the Jurisdictional Assessing Officer, Ward 12(1), New Delhi on 11-09-2022 itself. This reply also was not taken into cognizance by the Learned AO while framing the assessment on 13-09-2022. Accordingly, in view of these facts, the assessee had no other option but to file the said reply along with all the supporting documents as additional evidences before the Learned CITA. The order of Learned CITA is even silent about admission of additional evidences filed by the assessee thereby resulting in violation of principles of natural justice. The Learned CIT(A) simply endorsed the views of the Learned AO and dismissed the appeal of the assessee.