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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-3’ NEW DELHI
Before: SMT DIVA SINGH
Date of Hearing 21.07.2016 Date of Pronouncement 17.10.2016 ORDER The present appeal has been filed by the assessee assailing the correctness of the order dated 17.03.2015 of CIT(A)-15, Delhi pertaining to 2005-06 assessment year. Both the parties were heard only in respect to Ground No.2 which reads as under:- 2. “On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in passing the order without giving assessee an opportunity of being heard, in clear violation of the principle of natural justice.”
The relevant facts of the case are that the AO vide his order u/s 147/143(3) considering the fact that the assessee had declared a NIL income concluded the assessment at an income of Rs.9,02,250/- by making an addition u/s 68. Aggrieved the assessee came in appeal before the First Appellate Authority, assailing the addition made on merit as well as questioning the jurisdiction of the AO to pass the order. The record shows that before the CIT(A) the assessee sought adjournments however failed to advance any arguments in support of the grounds raised. The CIT(A) gave a final opportunity to the assessee to appear on 16.03.2015. However, on the said date neither any adjournment was moved nor any one appeared. In these circumstances, the CIT(A) relying upon CIT vs NR
I.T.A .No.-2638/Del/2015 Portfolio P.Ltd. sustained the addition made by the AO. Aggrieved by this, the assessee is in appeal before the ITAT.
The Ld.AR inviting attention to the impugned order requested that the opportunity of being heard may be granted to the assessee. It was his submission that he was not in a position to state as to why on the said date, the assessee was not represented. However, the assessee, it was submitted is serious in pursuing the appeal filed. It was submitted that in the eventuality, the issues are set aside for granting an opportunity to the assessee, he gave his personal undertaking that the assessee shall participate in the proceedings fully. Considering the undertaking given the Ld. Sr. DR did not object to the prayer of the counsel.
Accordingly, considering the material available on record, I find that in the light of the submissions of the parties before the Bench, it would be appropriate to set aside the issue back to the CIT(A) with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. It is hoped that the opportunity so provided to the assessee is utilized by participating fully and fairly before the CIT(A). It is made clear that incase the opportunity so provided in good faith is abused, the Ld. CIT(A) would be at liberty to pass a speaking order in accordance with law on the basis of material available on record.
In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open court on 17th October, 2016.