ITAT Agra Judgments — January 2020

The Tribunal found merit in the assessee's contention regarding the violation of natural justice. Consequently, the matter was remitted back to the CIT(A) for de novo consideration, with directions to provide all relied-upon documents and grant the assessee an opportunity to present their case.

The Tribunal held that an appeal lies to the CIT(A) against an intimation issued by the CPC under section 143(1) if the assessee denies their liability. The CIT(A) had wrongly dismissed the appeal without adjudicating on merits.

The Tribunal found merit in the assessee's contention regarding the violation of natural justice. Consequently, the matter was remitted back to the CIT(A) for de novo consideration, with directions to provide all relied-upon documents and grant the assessee an opportunity to present their case.

The Tribunal held that the CIT(A) was justified in deleting the disallowance under Section 40(a)(ia) as the payee had offered the income and paid taxes, and the technical objection regarding the filing of Form 26A was overcome. The Tribunal also upheld the deletion of disallowances for freight, truck running, repair, maintenance, and depreciation expenses, finding sufficient evidence provided by the assessee.

The Tribunal held that the CIT(A) order was passed without affording a reasonable opportunity to the assessee to be heard and present documents. Therefore, the matter was remitted back to the CIT(A) for fresh adjudication.

The Tribunal condoned the delay in filing the appeal before the CIT(A) and remitted the matter back for a decision on merits. The Tribunal noted that the quantum appeal was still pending before the First Appellate Authority.