SHRI KASHMIR SINGH,AMRITSAR vs. INCOME TAX OFFICER WARD 5(3), AMRITSAR

At the time of hearing, the ld. counsel for the assessee submitted that the ld. CIT Appeal erred in confirming the finding of the AO exparte qua the assesse u/s 144 of the Act, by not appreciating the facts of the case that alleged HDFC Saving account does not belong to the assessee and without granting adequate opportunity of being heard to the assessee, in rebuttal. He requested that the matter may be remanded to the file of the CIT(A), to be adjudicated on merits afresh after considering the paper book and documentary evidenced filed on the record and would be filed in the course of afresh proceedings before the CIT Appeal.

Per contra, the learned additional CIT, DR stands by the impugned order. However, he has raised no objection to the request of the assessee on principles of natural justice.

It is evident from the impugned order that the CIT appeals has mentioned the facts of the issue of the notices but he has not mentioned the facts regarding the service of the said notices on the assessee. Thus, the assessee has been denied sufficient opportunity of being heard to present its case in compliance to the aforesaid notices dated which were never served upon the appellant assessee. From the above, it is noted that the CIT appeals has picked up the figures from the statement of accounts as stated by the assessing officer in the order passed under section 144 of the act. The learned CIT appeal has merely confirmed the finding of the AO without bringing cogent material evidence on record or the reply of the assessee in compliance to notices, and rebuttal. In our view, such observation of the CIT appeals without support of corroborative documentary evidences and rebuttal of the assessee on record are considered to be in gross violation of the principles of natural justice. Accordingly, we consider that it is a fit case, required to be send back to the ld. CIT appeals to examine the matter afresh, after considering the submissions of the assessee to be filed in the fresh proceedings. The CIT appeals shall afford adequate opportunity of being heard to the assessee. The assessee is directed to cooperate in the fresh proceedings before the CIT appeals. Thus, the matter is remanded back to the file of the CIT appeals to decide the issue afresh by passing a speaking order by addressing the objections and grievances of the assessee. Assessment Year: 2009-10

In the result, the appeal filed by the assessee is allowed for statistical purposes.