The Chennai Bench of Income Tax Appellate Tribunal (ITAT) held that the Commissioner of Income Tax (Appeals) [CIT (A)] has not adjudicated the issues on merits thus restored the matter to the CIT(A) to decide all the issues afresh in accordance with law by affording an opportunity of being heard to the assessee.
The assessee M/s. Carborundum Universal Limited filed its return of income for the assessment year 2011-12 admitting a total income of Rs.117,65,52,629/-. The case was selected for scrutiny and assessment under Section 143(3) read with Section 923CA of the Income Tax Act,1961 was completed by determining the income of the assessee at Rs.120,92,74,451/-.
The Assessing Officer believed that the income chargeable to tax has escaped the assessment and accordingly, issued notice under Section 148 of the Income Tax Act and served to the assessee . Notices under Section 143(2) and 142(1) of the Income Tax Act were also issued.
After considering the submissions of the assessee, the Assessing Officer has completed the assessment under Section 143(3) read with Section 147 of the Income Tax Act assessing total income of the assessee at Rs.122,15,53,268/- after making various additions. The CIT (A) dismissed the appeal filed by the assessee since there was no response to the hearing notices or filed any submission.
Further aggrieved the assessee filed an appeal before the Tribunal
The Authorised Representative (AR) of the assessee R. Vijayaraghavan, has submitted that before the CIT(A), the assessee has raised various grounds including legal issue of reopening assessment under Section 147 of the Income Tax Act.
It was further submitted that reopening of assessment within four years on the same set of facts and without any tangible material would amount to mere change of opinion and without adjudicating the issues on merits, the CIT (A) concluded the exparte appellate order is legally unsustainable.
The AR prayed that the assessee may be afforded an opportunity of being heard since the assessee was prevented by reasonable cause as the assessee was unable to contact its counsel to represent the case during pre and post covid-19 pandemic period.
D. Hema Bhupal appeared as Departmental Representative.
The Bench comprising of V. Durga Rao, Judicial Member and Manoj Kumar Aggarwal, Accountant Member observed that the assessee has raised various grounds including legal issue of reopening of assessment under Section 147 of the Income Tax Act and the CIT (A) has not adjudicated the issues on merits.
The Tribunal set aside the CIT (A) order and remitted the matter back to the file of the CIT (A) to decide all the issues afresh in accordance with law by affording an opportunity of being heard to the assessee. The assessee is also directed to furnish complete details with material evidences and convincing explanations before the CIT (A) for consideration.
Thus the appeal of the assessee was allowed for statistical purposes.
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