The New Delhi bench of the Income Tax Appellate Tribunal (ITAT) directed the assessing officer to re-adjudicate the assessment order under section 144 of the Income Tax Act,1961 without giving sufficient opportunity to the assessee.
Satish Tyagi, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the assessment order passed by the assessing officer under section 143(3) read with section 147 of the Income Tax Act.
Nitin Kumar, the counsel for the assessee submitted that the only remedy that the assessee seeks to pursue at this point was the restoration of ex-parte assessment passed under Section 144 of the Income Tax Act to the file of the assessing officer for fresh consideration of the facts and circumstances of the case per the law.
It was further submitted that the assessment order passed by the assessing officer without giving sufficient opportunity to the assessee is liable to be deleted.
Anuj Garg, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the reopening action was for the benefit of revenue as held in a case and therefore the income returned cannot be assessed at a lower figure in the reassessment proceedings.
The bench observed that the assessing officer shall redetermine the issue without any fathers and per the law and pass the assessment order by giving sufficient opportunity to the assessee to present the case before the authority.
The two-member bench comprising Chandra Mohan Garg (Judicial) and Pradip Kumar Kedia (Accountant) restored the matter to the assessing officer for fresh adjudication of points raised per the law after giving a proper opportunity to the assessee while allowing the appeal filed by the assessee.
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