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Facts
The Assessing Officer completed reassessment proceedings under Section 147/143(3) for AY 2012-13, determining the assessee's income at Rs. 17,09,400 against a returned income of Rs. 2,22,450. The CIT(A) subsequently dismissed the assessee's appeal against this addition.
Held
The Tribunal found that both the assessment and first appellate orders were passed without providing reasonable opportunity to the assessee and the assessment order lacked factual clarity. It set aside the CIT(A)'s order and restored the matter to the Assessing Officer for a de novo assessment after giving the assessee a proper hearing.
Key Issues
Whether the assessment and first appellate orders were valid despite the lack of reasonable opportunity to the assessee and insufficient factual clarity in the assessment order regarding the additions made.
Sections Cited
Section 147, Section 143(3)
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Income Tax Appellate Tribunal, VARANASI CIRCUIT BENCH, VARANASI
Before: SHRI ANADEE NATH MISSHRA
has been filed by the assessee for assessment year 2015-16 against impugned appellate order dated 17/11/2023 (DIN & Order No. ITBA/NFAC/S/250/2023- 24/1054508587(1) of National Faceless Appeal Centre, (NFAC), Delhi.
In this case, assessment order dated 23.12.2019 was passed by the Assessing Officer under Section 147/143(3) of the Income Tax Act, 1961 (in short the ‘Act’) whereby the assessee’s total income was determined at Rs.17,09,400/- as returned income of Rs.2,22,450/-. The assessee’s appeal was dismissed by learned CIT(A) vide impugned appellate order dated 21.07.2023.
At the time of hearing, the assessee was represented by none and Revenue was represented by Shri G.P. Singh, Senior Department Representative. In the absence of any representation from the assessee’s side, learned Departmental Representative for the Revenue was heard. He relied on the impugned appellate order and the learned CIT(A) and on the assessment order, but left the matter to the discretion of the Bench. On perusal of records, it is found that the aforesaid assessment order as well as the impugned appellate order of the learned CIT(A) have been passed without providing reasonable opportunity to the assessee. Further, the assessment order is a brief one in which factual matrix has not been present with adequate clarity. In view of the foregoing, appellate order of the learned CIT(A) is set aside and the issue in dispute regarding additions made in the assessment order are restored back to the file of the Assessing Officer with a direction to pass denovo appellate order in accordance with law, after providing reasonable opportunity to the assessee.
In the result, the appeal of the assessee stands partly allowed for statistical purposes.
(Order pronounced in the open court on 05/01/2026)