SUDHIR CHAWLA,DEHRADUN vs. ACIT, CC, HALDWANI, HALDWANI

The Ld. Counsel for the Assessee submitted that the Assessee was under imprisonment at the time of assessment proceedings, therefore, the Assessee could not appear before the A.O. and also before the Ld. respective orders in violation of principals of natural justice, thus, sought for allowing the Appeals.

Per contra, the Ld. Departmental Representative submitted that as on the date of search, the Assessee was not in prison and he was in prison after the date of search. As the Assessee has not participated in the proceedings before the A.O. as well as before the Ld. CIT(A), Assessee cannot find fault with the authorities below in passing the orders impugned. Thus, sought for dismissal of the captioned Appeals.

We have heard both the parties and perused the material available on record. Both the order of the A.O. as well as order of the Ld. CIT(A) are ex-parte, wherein the Assessee has not participated in any of the proceedings. It is a matter of fact the Assessee was imprisoned at the time of assessment proceedings, which ultimately resulted in passing the ex-parte orders by the authorities below. In view of the above, in the interest of justice, we deem it fit to restore the issue to the file of the A.O. for de-novo assessment. Needless to say, the A.O. shall provide opportunity of being heard to the Assessee before passing the assessment orderin accordance with law. The Assessee is also directed to participate in assessment proceedings without fail.

In the result, the Appeals of the Appellant are partly allowed for statistical purpose.