SAHAB SINGH S/O JAIMAL SINGH,KAITHAL vs. ITO, WARD-2, KAITHAL

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ITA 279/CHANDI/2024Status: DisposedITAT Chandigarh24 September 2024AY 2011-12Bench: SHRI A.D. JAIN (Vice President), SHRI KRINWANT SAHAY (Accountant Member)5 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not afforded an opportunity to present their case before the Assessing Officer and that the CIT(A) proceedings also lacked proper procedural fairness. Therefore, the case was remanded back to the Assessing Officer.

What were the facts?

The assessee's appeal was against an ex-parte assessment order passed under section 147 r.w.s 144. The assessee contended that they did not get an opportunity to file a reply before the Assessing Officer and that details submitted during the CIT(A) proceedings were not shared for rejoinder.

What were the issues?

Whether the assessment order was passed in violation of principles of natural justice and procedural requirements, and if the assessee was denied adequate opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 69,Section 292BB,Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year : 2011-12 Sahab Singh Vs. The ITO, बनाम Ward-2, S/o Jaimal Singh Kaithal Habri Road, Gamri Pundri, Kailthal 136026 �थायी लेखा सं./PAN No: DBMPS6919G अपीलाथ�/ APPELLANT ��यथ�/ REPSONDENT ( PHYSICAL HERING ) �नधा�रती क� ओर से/Assessee by : Shri Pulkit Saini, Advocate राज�व क� ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr.DR सुनवाई क� तार�ख/Date of Hearing : 23.09.2024 उदघोषणा क� तार�ख/Date of Pronouncement : 24.09.2024 आदेश/Order Per Krinwant Sahay, A.M.:

The appeal in this case has been filed by the Assessee against the order dated 10.01.2024 of the ld. Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi.

2. Grounds of appeal are as under: - 1. That the Ld. CIT (Appeals) erred on facts and law in upholding the impugned assessment

279-Chd-2024 – Sahab Singh, Kaithal 2 order u/s 147 r.w.s 144, determining the income of assessee at Rs. 1,30,47,684.

2.

That the Ld. CIT (Appeals) has erred in law and on facts in upholding the impugned assessment order passed without assuming jurisdiction as_per law and in violation of mandatory conditions of section 147 to 151 of the Income Tax Act, 1961 and judicial precedents on the issue of notice.

3. That the Ld. CIT (Appeals) has erred in law id on facts in upholding the impugned assessment order wrongly addressed and without quoting the PAN of the assessee.

4. That the Ld. CIT (Appeals) has erred in law and on facts in invoking section 292BB to validate a defective notice not issued in the proper name of the assessee and the assessee not having waived the requirement for issue of a proper notice.

5. That the Ld. CIT (Appeals) has erred in law and on facts in not appreciating the documentary evidences produced by the assessee while sustaining the addition s/s 69 of the Act.

6. That the Ld. CIT (Appeals) has erred in law and on facts in confirming the addition of Rs. 1,30,40,000 without appreciating that the Assessment/ remand report has been made in a mechanical manner based on surmises and conjectures in violation of principles of natural justice.

279-Chd-2024 – Sahab Singh, Kaithal 3 7. That having regard to the facts and circumstances of the case, Ld. A.O. has erred in law and on facts in charging interest u/s 234A and 234B of the Income Tax Act, 1961.

8.

That the appellant craves leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing.

3.

During the proceedings before us, the ld. Counsel for the Assessee submitted that the ex-parte assessment order was passed by the Assessing Officer u/s 144 of the Income Tax Act, 1961 (in short 'the Act'). Therefore, the Assessee had no occasion to file its reply before the A.O. During the appeal proceedings before the ld. CIT(A), the Assessee filed the same details which were sent to the Assessing Officer by CIT(A) for remand report but a copy of the same was never given to the Assessee to file its rejoinder. Therefore, the Counsel requested that the matter may be restored back to the file of Assessing Officer for which the ld. DR did not have any objection.

4.

The ld. DR relied on the order of the authorities below.

5.

We have considered the submissions made by the ld. Counsel of the Assessee and we have also considered the arguments made by the ld. DR. We find that the assessment order was passed ex-parte and so the Assessee had no occasion to file details before the A.O. During the appeal proceedings before the ld. CIT(A) whatever details were filed

279-Chd-2024 – Sahab Singh, Kaithal 4 were sent to the A.O. for remand repot but a copy of the same was never confronted nor given to the Assessee to file its rejoinder. Accordingly, in our opinion, the Assessee could not get opportunity to bring material fact on record of the A.O. Therefore, in order to provide natural justice to the Assessee, the case is remanded back to the file of the Assessing Officer to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the lower authorities. All pleas available under the law shall remain so available to the assessee. Ordered accordingly.

6.

In the result, the appeal of the Assessee is allowed for statistical purposes.

Order pronounced on 24.09.2024.

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