Addition made by AO on Ground of Non Reply of Notice issued During Assessment Proceedings: ITAT Directs Re-adjudication [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) directed the assessing officer to re-adjudicate the addition made on the ground of non-reply of notice issued during the assessment proceedings. 

Satish Panduranga, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the addition made by the assessing officer during the assessment proceedings. 

Vidhyadhar, the counsel for the assessee contended that the assessee was not well educated and had no knowledge of the Income Tax Business Application (ITBA) portal and hence, the assessee has not complied with certain notices issued by the National Faceless Appeal Centre (NFAC). 

It was further submitted that the addition made by the assessing officer on the ground of nonreply of notice was not as per the law and is liable to be deleted. 

Neera Malhotra, the counsel for the revenue department relied on the decisions made by the lower authorities and contended that the assessee was not given any explanation or reply for the notice which was issued during the assessment proceedings by the assessing officer. 

It was also submitted that the addition made by the assessing officer was as per the law and sustainable. 

The two-member bench comprising Chandra Poojari ( Accountant) and Beena Pillai ( Judicial) held that the assessing officer did not give sufficient opportunity to prove the reason of the assessee during the assessment proceedings. 

Additionally, the bench directed the assessing officer to re-adjudicate the matter to pass an order after giving the opportunity of hearing to the assessee while allowing the appeal filed by the assessee. 

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