Recently, the Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) set aside an ex-parte order and remanded a case to the Assessing Officer (AO) for reassessment as the assessee was denied a proper opportunity for hearing.
Chiragbhai Jadurai Patel, appellant-assessee, challenged the order dated 06.03.2024 passed by the CIT(A), National Faceless Appeal Centre (NFAC), passed under Section 250 of the Act.
Become a PF & ESIC expert with our comprehensive course – Enroll Now
The Assessing Officer (AO) initiated assessment proceedings under Section 147 of the Income Tax Act, 1961, and passed an order determining the total income. The CIT(A) issued hearing notices, which were not complied with, resulting in an ex-parte order being passed, confirming the additions made by the AO.
The assessee, being dissatisfied with the order of the CIT(A) confirming the additions made by the Assessing Officer (AO), appealed to the Tribunal.
Become a PF & ESIC expert with our comprehensive course – Enroll Now
The Tribunal found that no harm would come to the Revenue by giving the assessee another opportunity to be heard. The matter was then remanded to the Assessing Officer (AO) to pass an assessment order de novo after providing a proper hearing.
The two-member bench comprising Dr. B.R.R. Kumar (Vice-President) and Suchitra Kamble (Judicial Member) decided to restore the matter to the file of the Assessing Officer (AO) for fresh adjudication, ensuring that the assessee is provided an opportunity of being heard, while also directing the assessee to pay Rs. 5,000 towards costs, to be deposited in the Prime Minister’s National Relief Fund.
In conclusion,the appeal was partially allowed for statistical purposes.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
