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Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DLEHI
Before: SHRI SAKTIJIT DEY & SHRI M. BALAGANESH
This is an appeal by the assessee against order dated 28.03.2019 of learned Commissioner of Income-tax (Appeals)-5, New Delhi pertaining to assessment year 2010-11.
At the outset, learned counsel appearing for the assessee submitted, before the first appellate authority the assessee had raised certain legal issues, through additional grounds, challenging validity of assessment order. He submitted, though, the first appellate authority called upon the Assessing Officer to offer his comments on the additional grounds raised by the assessee, however, ultimately, he has failed to adjudicate the additional grounds. Proceeding further, he submitted, since, in assessee’s case the assessment is based on incriminating material found in course of search and seizure operation conducted in case of a third party, proper course for the Assessing Officer was to initiate proceedings u/s. 153C of the Income-tax Act, 1961. He submitted, instead of initiating proceedings u/s. 153C of the Act, the Assessing Officer has invoked the provisions of section 147 of the Act, which is invalid. Thus, he submitted, the order of first appellate authority may be set aside and issues may be restored back to him for fresh adjudication after deciding the additional grounds raised by the assessee. Learned departmental representative did not express any objection against restoration of issues to ld. Commissioner (Appeals).
Having considered rival submissions, we find, in paragraph 4.2 of the impugned order, learned Commissioner (Appeals) has accepted that the assessee had raised certain additional grounds challenging validity of the assessment order. It is also evident, the additional grounds were forwarded to Assessing Officer seeking his comments. However, while deciding the appeal, learned Commissioner(Appeals) has decided the additional grounds in a perfunctory manner without properly addressing the issues raised therein. In view of the aforesaid, we are inclined to set aside the impugned order of ld. Commissioner (Appeals) and restore the issues back to him for fresh adjudication. Learned Commissioner (Appeals) is directed to decide all the issues including the issues raised in additional grounds with proper reasoning after providing due and reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes.
In the result, appeal is allowed for statistical purposes.
Order pronounced in the open court on 17/05/2023.