RAHUL SAINI,NOIDA vs. ASSESSING OFFICER ITO, DELHI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 25.05.2025, for Assessment Year 2016-17.

Shri Sarad Shandillya, appearing on behalf of the assessee submits that the Assessing Officer (AO) in violation of principal of nature justice without affording sufficient opportunity of making submissions has passed assessment order making the addition of Rs.20,14,150/- u/s.69 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). The ld. AR submits that the AO (AY 2016-17) issued notice u/s.143(2) of the Act on 26.12.2019 asking the assessee to attend the office on 28.12.2019 at 11.30 AM. The assessees on the same date i.e. 26.12.2019 furnished reply. The reply alongwith relevant documents were uploaded on the portal on 26.12.2019 at 18.52 hours. The Assessing Officer completed the assessment u/s.147/143(3) on 27.12.2019 stating that no response was filed by the assessee. The AO failed to take note of the reply furnished by the assessee and passed the assessment order on a date before the date given by him in notice issued u/s.143(2) of the Act. The assessment order is passed in haste and in violation of principles of natural justice. The assessee carried the issue in appeal before the CIT(A), but failed to get the desired relief. Hence, present appeal before the Tribunal.

On merits of the addition, the ld. AR submits that the addition has been made by the AO u/s.56(2)(vii)(b) of the Act. The dispute is with regard to valuation of property. The AO has made addition merely on the basis of estimation, no report from the DVO was called by the AO before making the addition it is a settled law that where AO does not agree with valuation, the AO has to call for report from the DVO.

Per contra, Ms. Sudha Gupta representing the department vehemently defended the impugned order. The ld. DR submits that the issue can be restored to the AO for denovo assessment.

Both sides heard, orders of the authorities below examined. A perusal of assessment order dated 27.12.2019 shows that the same has been passed in grave violation of principles of natural justice. The AO issue notice u/s.143(2) of the Act to the assessee on 26.12.2019 asking the assessee to attend his office on (AY 2016-17) 28.12.2019 at 11.30 AM. Thereafter, the AO passed assessment order on a day prior to the date fixed for hearing of the said case. A perusal of the assessment order reveals that the same has been passed without considering submissions of the assessee which in fact were filed on 26.12.2019 i.e. the date on which the notice u/s.143(2) of the Act was issued by the AO. The said assessment order has been passed in a mechanical manner, in haste without proper application of mind, thus, liable to be quashed.

The assessment order is quashed and appeal of the assessee is allowed. Order pronounced in the open court on Monday the 27th day of October, 2025.