SMT. KUSUM CHHAJED,RATLAM vs. THE ITO WARD-1, RATLAM
What did the Tribunal hold?
The Tribunal held that the assessment was made in violation of the principles of natural justice as the assessee was not given a sufficient opportunity of being heard. Therefore, the matter was restored to the Assessing Officer for fresh assessment.
What were the facts?
The assessee did not file a return of income, leading to a best judgment assessment by the Assessing Officer. The Assessing Officer found credit entries of Rs. 2,31,539/- which the assessee failed to explain, and this was confirmed by the CIT(A).
What were the issues?
Whether the assessment order was passed in violation of the principles of natural justice by not providing a sufficient opportunity of being heard to the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI CHANDRA MOHAN GARG & SHRI O.P. MEENA
Smt. Kusum Chhajed /ITA No. 70/Ind/2017 Page 1 of 4
आयकर अपील�य अ�धकरण ,इ�दौर �यायपीठ ,इ�दौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE �ी च��मोहन गग�, �या�यक सद�य तथा �ी ओ.पी.मीना , लेखा सद�य के सम� BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER आ.अ.सं /.I.T.A. No.70/Ind/2017 �नधा�रणवष� / Assessment Year:2007-08 Smt. Kusum Chhajed vs. Income Tax Officer-I Dhanmandi Ratlam Ratlam
अपीलाथ� अपीलाथ� /Appellant अपीलाथ� अपीलाथ� ��यथ� ��यथ� /Respondent ��यथ� ��यथ� �था.ले.सं./PAN: AMKPC – 6768K अपीलाथ� क� ओर से अपीलाथ� क� ओर से/Appellant by अपीलाथ� क� अपीलाथ� क� ओर से ओर से None ��यथ� क� ओर से ��यथ� क� ओर से/Respondent by ��यथ� क� ओर से ��यथ� क� ओर से Shri Mohd. Javed सुनवाई क� तारीख/Date of hearing सुनवाई क� तारीख सुनवाई क� तारीख सुनवाई क� तारीख 21.03.2017 उ�ोषणा क� तारीख उ�ोषणा क� तारीख/Date of pronouncement उ�ोषणा क� तारीख उ�ोषणा क� तारीख 27.03.2017 आदेश आदेश /O R D E R आदेश आदेश PER BENCH This appeal is filed by the assessee against the order of ld. Commissioner of Income tax (Appeals), Ujjain [hereinafter referred to as the CIT(A)] dated 24.11.2016. This appeal pertains to Assessment Year 2007-08 as against appeal decided in respect of assessment order dated 12.5.2011 passed u/s 144/147/147 of
Smt. Kusum Chhajed /ITA No. 70/Ind/2017 Page 2 of 4
Income Tax Act, 1961 (herein after referred to as "the Act) by the
ITO Ward 3(1) Indore [hereinafter referred to as the AO]. 1. The sum and substance of the grounds of appeal is that the
learned CIT(A) was not justified in confirming the income assessed
by the Assessing Officer at Rs.2,31,540/- without affording the
assessee reasonable and sufficient opportunity of being heard. 1.1 Succinctly, facts as culled out from the orders of lower
authorities are that the assessee did not file any return of income.
The Assessing Officer, therefore, after recording reasons, issued
notice u/s 148 of the Act in response to which the assessee filed the
return of income. Subsequently, notices u/s 143(2) and 142(1) of
the Act have been issued by the Assessing Officer which were
complied with by the assessee. On verification of record from the
accounts of M/s Todarmal & Sons and bank passbook of the
assessee, total credit entries amounting to Rs. 2,31,539/- were
found. The Assessing Officer required the assessee to explain the
same but the assessee failed to discharge the burden of proof by not
establishing the genuineness of the credit entries. The Assessing
Officer, therefore, assessed the total income of the assessee at
Rs.2,31,539/-.
Smt. Kusum Chhajed /ITA No. 70/Ind/2017 Page 3 of 4
1.2 On appeal, the learned CIT(A) confirmed the same.
1.3 Now the assessee is in appeal before the Tribunal. Before us,
the learned counsel for the assessee fairly submitted that the
assessee is ready and willing to put-forth its claim before the
Assessing Officer if the matter is set aside to his file.
1.4 To the above proposition, the learned DR has no objection.
1.5 We have considered the submissions of both the sides. After
careful consideration of the submissions of the parties in view of the
facts of the case, we find that in this case the Assessing Officer has
made the assessment u/s 144 of the IT Act. It is a well settled
principle of natural justice that no-body should be condemned
unheard. Principle of natural requires that sufficient opportunity of
being heard should be provided to the assessee before deciding the
issue against him. We are of the view that since the Assessing
Officer and the learned CIT(A) have decided the matter without
hearing the assessees in violation of the principles of natural justice
and fair play, this appeal needs to be restored to the file of the
Assessing Officer for deciding the same after providing due
opportunity of being heard to the assessees. We, therefore, following
the principle of natural justice, restore this appeal to the file of the
Smt. Kusum Chhajed /ITA No. 70/Ind/2017 Page 4 of 4
Assessing Officer with the direction to frame fresh assessment after providing the assessees due opportunity of being heard. Needless to mention that the assessee is at liberty to file evidence, if any, in support of its claim before the Assessing Officer. 2. In the result, the appeal of the assessee is allowed for statistical purposes. 3. Order pronounced in the open Court on 27th March, 2017.
Sd/- Sd/- (च��मोहन गग�) (ओ.पी.मीना) �याियक सद�य लेखा सद�य (CHANDRA MOHAN GARG) (O.P.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER
March 27 , 2017 Dn/-
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