MEHTAB ALAM KHAN,MUMBAI vs. ITO 21(3)(3), MUMBAI

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ITA 5144/MUM/2014Status: DisposedITAT Mumbai02 March 2016AY 2009-104 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's contention regarding non-receipt of notices at the correct address. Upholding the principle of natural justice, the appeal was remanded to the Assessing Officer for a fresh decision after providing a hearing.

What were the facts?

The assessee purchased and sold a flat, with AIR information indicating a sale value of Rs. 52,24,000/- not shown in the return. The Assessing Officer passed an ex-parte assessment, and the assessee also failed to appear before the CIT(A) due to notices being sent to an incorrect address.

What were the issues?

Whether the ex-parte assessment and appellate order were valid when notices were not served at the assessee's correct address, violating the principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “B”, MUMBAI

Before: Shri Joginder Singh, & Shri Sanjay Arora

For Appellant: Shri Jayant R. Bhatt, Shri Sanjeev Jain-DR
Hearing: 02/03/2016

आदेश / O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by an ex-parte impugned order dated 26/09/2012, of the ld. First Appellate Authority, Mumbai, confirming addition of Rs.52,24,000/- without calling information from the Assessing Officer with respect to nature of transactions entered into by the assessee and even ignoring the ex-parte order passed by the ld. Assessing Officer himself. 2. During hearing, the ld. counsel for the assessee, Shri Jayant R. Bhatt, advanced argument, which is identical to the ground raised. The ld. DR, Shri Sanjeev Jain, contended that in spite of opportunities provided to the assessee, the assessee did not appear and the ld. Commissioner of Income Tax (Appeals) was forced to pass an ex-parte order.

2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee purchased a flat along with his mother and brother. The said flat was sold. As per the ld. Assessing Officer, there was AIR information that the assessee sold the property for Rs.52,24,000/- which has not been shown in the return. In the absence of non-appearance from the assessee side, ex-parte assessment was framed u/s 144 of the Act. Identically, the assessee did not appear before the ld. Commissioner of Income Tax (Appeals) due to non-receipt of notice, which were sent at a different address. During hearing, the Bench asked the assessee to produce the acknowledgment of the return for A.Y.2009-10. The assessee filed the same from which it is noticed that the address mentioned in the return itself is flat no.106, 1st floor, 4th building, whereas, the notices were sent at house no.305, building no.3, Powai Vihar Complex, thus, we find merit in the contention of the assessee and keeping in view, the principle of natural justice that no person should be condemned unheard, we remand this appeal to the file of the ld. Assessing Officer to examine the claim of the assessee and after providing due opportunity of being heard decide the case on merit afresh in accordance with law. The appeal of the assessee is allowed for statistical purposes.

Finally, the appeal of the assessee is allowed for statistical purposes only.

This order was pronounced in the open court in the presence of ld. representative from both sides at the conclusion of the hearing on 02/03/2016. Sd/- Sd/- (Sanjay Arora) (Joginder Singh) लेखा सद�य / ACCOUNTANT MEMBER �या�यक सद�य /JUDICIAL MEMBER मुंबई Mumbai; �दनांक Dated : 02/03/2016 f{x~{tÜ? P.S/.�न.स. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. आयकर आयु�त(अपील) / The CIT, Mumbai. 4. आयकर आयु�त / CIT(A)- , Mumbai

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