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Facts
The assessee's appeal was directed against the order of the NFAC, Delhi for A.Y 2018-19. The assessee's grounds of appeal challenged the assessment order as bad in law and facts, alleging lack of proper notice and opportunity to be heard.
Held
The Tribunal found that the first appellate authority had not provided a reasonable and adequate opportunity of being heard to the assessee. Therefore, the appeal was restored to the file of the CIT(A) for a fresh decision.
Key Issues
Whether the assessee was afforded a reasonable opportunity of being heard by the appellate authority, given the alleged improper service of notices.
Sections Cited
139(1), 144, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI ‘A’ BENCH,
Before: SHRI SATBEER SINGH GODARA, & SHRI NAVEEN CHANDRA
This appeal by the assessee is directed against the order of the NFAC, Delhi dated 24.01.2025 pertaining to A.Y 2018-19.
2. At the very outset the ld. counsel for the assessee submitted his grievances vide grounds of appeal which read as under:
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A. dismissing the appeal in limine on account of delay even though in the earlier part of the appellate order the delay has been stated to have condoned by the NFAC;
B. in not admitting the appeal for adjudication and orders
C. confirming the following actions of the Assessment Unit -
"1. For that the assessment order passed by the Ld. AO is bad in law as well as on facts.
For that the assessment order passed by the Ld. AO without providing the assessee copies of reasons recorded, material relied upon, inquiries made and approval obtained before initiating the reassessment proceedings. Therefore, the assessment order passed by the Ld. AO is bad in law.
3. That having regard to the facts and circumstances of the case, Ld. AO has erred in law and on facts in making the addition of entire Plot sales consideration of Rs.5580000/- as Short Term Capital Gain. This plot was purchased on02.07.2014 for Rs.4384000/- After indexation of plot purchase cost and other expenses, there is n income tax liability as per Income Tax Act.
Since assessee did not have any taxable income in assessment year under appeal, therefore, assessee was not liable to file the return of income u/s 139(1) of the Act.
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That the addition of Rs.5580000/- made under Capital Gain of the Act to the income of the Appellant is not tenable under the facts of the case since the assessee was ill and Non techno savvy. Due to medical reasons, illiteracy and Non techno savvy assessee was not able to participate in assessment proceedings, hence order passed u/s144 is gross violation of principle of natural justice.
That Violation of principles of natural justice as proper opportunity is denied simple because notices are sent to (1) email ids that are no longer in use (ii) email ids of chartered accountants who have created the profile of the assessee before 10 years/file the income tax return and who are no longer in the service of the assessee. Without proper service of notice under section 148, all proceedings are null and void."
Per contra, the ld. DR relied upon the orders of the authorities below.
4. A perusal of the above grounds of appeal reveal that the main argument of the ld. counsel for the assessee is that the ld. CIT(A) has not afforded reasonable opportunity of being heard by not serving proper notice to assessee. It is the say of the ld. counsel for the assessee that the emails were sent to email ids which were no longer in use and the email ids of CA who had created the profile of the assessee 10 years before and who are no longer in the service of the assessee.
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5. Having heard the rival submissions, we are of the considered view that the first appellate authority ought to have given a reasonable and adequate opportunity of being heard to the assessee. Therefore, in the interest of justice and fair play, we deem it fit to restore the appeal to the file of the ld. CIT(A). The ld. CIT(A) is directed to decide the appeal afresh after affording a reasonable and adequate opportunity of being heard to the assessee and considering the evidences/material furnished by the assessee. The assessee is directed to cooperate with the proceedings and furnish documents/evidence as required by the Assessing Officer. allowed for statistical purposes.
Order pronounced in open court on 27.08.2025.