NILESH BADANI,MUMBAI vs. DCIT 10(3), MUMBAI

At the outset, the ld.AR submitted before us that the ld.CIT(A) has grossly erred in confirming the assessment order without affording the fair 2 - and reasonable opportunity to the assessee to represent his case thereby causing gross violation of principle of natural justice and requested for annulling/quashing the appellate order passed by the FAA.

The ld. DR on the other hand opposed the submissions of the ld.AR qua the quashing or annulling the order of FAA but fairly submitted that if at all the opportunity of hearing was not granted or principle of natural justice was violated, at the most the matter could be set aside to the file of the ld.CIT(A) for adjudication denovo as per facts and law.

We have considered the rival submissions and perused the material placed before us including the impugned orders. We find that the assessee in ground no.4 has raised the issue of violation of principle of natural justice resulting from non-granting of fair and reasonable opportunity to the assessee to represent his case. We are of the considered opinion that principle of natural justice would be met if the assessee is granted one more opportunity of hearing as also no prejudice would be caused to the revenue if the appeal is restored back to the file of the AO. Accordingly, we restore this appeal to the file of the AO for denovo adjudication as per law after affording reasonable opportunity to the assessee to represent his case.