SHRI GOPI KISHAN PANDEY,KANPUR vs. INCOME TAX OFFICER- 2(1), KANPUR

In this appeal the assessee has challenged the addition which the Assessing Officer has made by invoking the provisions of section 50C of the Act. The assessee, besides taking ground on merits, has also taken a ground vide ground No. 4 that learned CIT(A) has not given reasonable opportunity of being heard.

Learned counsel for the assessee, at the outset, submitted that the case of the assessee was reopened u/s 147 of the Act and Assessing Officer, after invoking the provisions of section 50C of the Act, has made the addition. Learned counsel for the assessee submitted that notice u/s 148 was issued on 28/03/2013 and in response, the advocate of the assessee appeared before the Assessing Officer on 03/05/2013 and after that on 21/03/2014, the Assessing Officer issued notice u/s 143(2) of the Act and on 29/03/2014 itself the Assessing Officer completed the assessment u/s 144 of the Act. It was submitted that after giving notice for reopening of the case, the Assessing Officer did not take any action until 21/03/2014 and the case was attended by advocate of the assessee on 24/03/2014 and case was adjourned to 25/03/2014. It was submitted that assessee was out of station after that date and Assessing Officer passed the order on 29/03/2014 without giving the assessee sufficient opportunity of being heard. In this respect our attention was invited to paper book pages 1 to 3 where copy of order sheet of Assessing Officer and evidence of assessee being out of station in the last days of March, 2014, was placed. It was submitted that the appeal was filed before learned CIT(A) and the valuation report was filed before him but learned CIT(A) also dismissed the appeal of the assessee by holding that there is no provision in the Act requiring CIT(A) to make a reference to D.V.O. Learned counsel for the assessee submitted that the case has not been decided on merits either by the Assessing Officer or by learned CIT(A). It was prayed that therefore, one more opportunity may be given to the assessee so that he can explain his case to the Assessing Officer.

Learned D. R., on the other hand, though supported the orders of the authorities below but fairly agreed that the merits of the case have not been examined by either of the parties, therefore, the case may be remitted back to the Assessing Officer.

We have heard the rival parties and have gone through the material placed on record. We find that it is a fact that on 28/03/2013, the notice u/s 148 was issued and then on 21/03/2014, notice u/s 143(2) was issued.

In the result, the appeal of the assessee stands allowed for statistical purposes.