The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) directed Fresh Adjudication of Addition at 8% of the Gross Profit due to denial of hearing to the assessee.
The assessee, Vinodchandra Dahyabhai Darji, had appealed against the order passed by the Commissioner of Income Tax (Appeals), [CIT(A)] passed under Section 250 of the Income-tax Act, 1961, for Assessment Year ( AY ) 2017-18.
In this case, the assessee is a wholesale trader of Parle Biscuits Ltd’s products, with a revenue of Rs. 3.95 crores for the AY, mentioned above. The assessee filed Income Tax Returns ( ITR ) declaring a total income of Rs. 6,42,140 with a cash deposit of Rs. 2.83 crore.
The assessee contended that the order passed by the CIT( A ), which upheld the addition of Rs. 73,22,598 made by the Assessing Officer ( AO ), was wholly illegal and against the principles of natural justice.
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One of the grounds raised by the assessee was that CIT(A) had grievously erred in law and fact in not granting the opportunity to be heard through videoconferencing.
The ITAT observed that CIT(A) determined an addition at 8% of the gross profit without any opportunity to be heard to the assessee.
The bench, noting that the opportunity of being heard was not granted to the assessee, the matter to the file of CIT( A ) and directed the CIT( A ) to give the assessee an opportunity to be heard.
The bench also directed the CIT( A ) to obtain a receipt for the assessee’s payment of Rs. 5000 to the “Prime Minister’s National Relief Fund.”
The bench, comprising Suchitra Kamble ( Judicial Member ) and Dr. B.R.R. Kumar ( Vice President ), allowed the appeal filed by the assessee for statistical purposes.
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