SMT. KUSUM CHHAJED,RATLAM vs. THE ITO WARD-1, RATLAM

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ITA 70/IND/2017Status: DisposedITAT Indore27 March 2017AY 2007-084 pages
AI SummaryRemanded

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?

Section 144,Section 148,Section 143(2),Section 142(1)

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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