Consultant did not handle Proceedings Properly: ITAT directs AO to Conduct Proceedings Afresh [Read Order]

In an assessee-friendly ruling, the Income Tax Appellate Tribunal (ITAT), Bangalore bench has directed the Assessing Officer to conduct the proceedings afresh accepting the contention of the assessee that the Consultant who was handling the case did not conduct the proceedings properly.

The assessee is an individual engaged in the business of trading iron ore. The assesse filed the return of income for the asst. year 2007- 08 on 31/10/2007 declaring a total income of Rs.7,31,480/-. The assessee in the return of income had offered capital gains from the sale of shares and claimed exemption under section 54F for an amount of Rs.67,05,625/-. The AO initiated assessment proceedings under section 143(2) of the Income-tax Act and assessed the income of the assessee at Rs.76,82,705/- by disallowing the exemption claimed by the assessee under section 54F.

On appeal, the first appellate authority noted the fact that the assessee’s representative for the first time produced various details on 21.06.2010. The CIT (A) has verified these evidences but had rejected the same merely on the ground that these details should have been available with the assessee during the assessment proceedings itself and should have been produced before the AO.

The assessee contended that the Consultant did not handle the proceedings properly and produced documents before the Tribunal.

Granting relief to the assessee, the Tribunal consists of Shri George George K, Judicial Member and Ms. Padmavathy S, Accountant Member held that “In our view the decision of CIT(A) on a presumptive basis is incorrect and the CIT(A) has disposed off the appeal without considering the merits of the evidences submitted. The assessee’s submission that the consultant handled the assessment proceedings in an unprofessional manner also warrants consideration.

“Under these facts as discussed above and in the interest of justice, we feel it proper to restore back this matter to the file of AO for fresh decision after admitting the evidences which the assessee may like to bring on record. We order accordingly. We set aside the order of CIT(A) and restore the matter back to the AO for fresh decision after allowing sufficient opportunity to the assessee. In view of this decision, we do not make any comment on the merit of the issue,” the Tribunal said.

To Read the full text of the Order CLICK HERE

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