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Facts
The assessee's appeal arises from an order passed by the NFAC. The assessee contended that proper opportunity of being heard was not provided by the lower authorities, with notices being issued at the fag end of proceedings.
Held
The Tribunal noted that the AO issued a notice on 23.03.2022, with the assessment completed on 31.03.2022, and similar circumstances with the CIT(A) calling for additional details late in the proceedings.
Key Issues
Whether the assessee was provided adequate opportunity of being heard by the lower authorities, including the AO and CIT(A)?
Sections Cited
Section 250/2023-24
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI PRAKASH CHAND YADAV
PER SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER :
The present appeal of the assessee is arising from the order passed by the NFAC, Delhi dated 18/03/2024 in DIN No. ITBA/NFAC/S/ 250/2023-24/1062838030(1) for the assessment year 2015-16.
The assessee has raised 7 grounds of appeal, which are further divided into sub grounds. However, at the time of hearing of the appeal, the ld. Counsel for the assessee has only pressed ground number 1.2 and prayed for an opportunity of being heard before the AO. The ld. Counsel for the assessee pointed out that this is the second round of litigation and in first round, Hon’ble ITAT vide its order dated 26/02/2020 has restored the matter to the AO for framing denovo assessment. The observations of the ITAT were as under:-
3. It is the submission of the ld. Counsel for the assessee that in pursuance to the order of Hon’ble ITAT, the ld. AO in this round of proceedings has issued first notice of hearing on 23/03/2022 and the proceedings were going to be time barred on 31/03/2022. The ld. Counsel submitted that in response to the notice of the AO dated 23/03/2022, the assessee has duly filed requisite details. However, the AO asked for certain more details on 30/03/2022 and this notice was received by the company on 31/03/2022 i.e. the date on which the assessment order was passed by the AO. The ld. Counsel for the assessee has drawn the attention of the Bench towards pages No.1629 to 1633 of paper book No.3 and other pages of paper book 3 in support of his arguments. It is pertinent to mention here that the assessee has duly raised this issue of notice on 31.03.2022 before the Ld CIT(A) also.
4 Aggrieved with the order of the AO assessee filed appeal before the Ld CIT(A) and duly attended the proceedings from time to time as evident from the case records. It is relevant to observe that the Ld CIT(A) has also called for the details from assessee from time to time and the same were filed by the assessee, as contended.
Ld Counsel for the assessee submitted that Ld CIT(A) has called for some more details related to claim of expenses. It is the averment of the counsel that since those details were a decade old assessee could not . be able to compile in short duration and the appeal of the assessee has been heard by the CIT-(A).
In the back drop of above facts the assessee filed present appeal and craved that principle of natural justice has not been adhered to by the lower authorities and hence one more opportunity to the assessee may kindly be granted in the interest of justice. In nutshell, it is the grievances of the assessee that proper opportunity of being heard has not been provided by both the lower authorities.
The ld. DR relied upon the order of the ld. CIT(A) and AO and contended that due opportunities were given to the assessee. However, the same were remained un-complied with.
After considering the rival submissions, we are of the view that it is appropriate to give one more opportunity to the assessee particularly in view of the facts that notices by the AO was issued at the fag end of the proceedings i.e. on 23.03.2022 and the assessment got completed on 31.03.2022. Similarly, the ld. CIT(A) has also called for additional details at the fag end of the proceedings. It is pertinent to note here that the ld. CIT(A) has restored some issues to the file of AO for further verification. Therefore, in the interest of justice, we restore the matter to the file of the AO for fresh adjudication in accordance with law. It is also relevant to mention here that the counsel for the assessee has given undertaking before the Bench and undertakes that he will file all the required details necessary for the assessment within 30 days before the AO, once he gives notice of hearing to the assessee. Hence, the appeal of the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.