In a recent ruling, the Chennai bench of the Income Tax Appellate Tribunal remanded the case of an addition of ₹117 Lakhs back to the commissioner of for fresh adjudication. The assessee appealed against an order of the Commissioner of Income Tax (Appeals) [ CIT(A) ], National Faceless Appeal Centre ( NFAC ), regarding the assessment year(AY) 2015-16.
The assessee, Rathese Josphin Amala Jaya, had filed her income returns to which the AO made various additions to the returned income and assessed the income at ₹117 Lakhs. The Assessee could did not comply with the notices sent to it on this behalf and the AO continued to pass the order.
Aggrieved by the order produced by the AO, the assessee moved forward with an appeal to the CIT(A). The CIT(A) n further considerations upheld the AO’s order, confirming the addition for want of material evidence from the assessee.
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Aggrieved by the order pronounced by the CIT(A), the assessee approached the Income Tax Appellate Tribunal. The assessee’s authorised representative (AR) prayed for another hearing opportunity before lower authorities.
The departmental representative for the revenue strongly opposed this, stating that the assessee was given enough opportunities to be heard.
The ITAT, after hearing the submissions made by both sides, held that though the assessee has remained negligent, the principles of natural justice were to be weighed here. The ITAT highlights the need to uphold the principles of natural justice and allow the prayer of the AR.
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The two-judge bench consisting of Manu Kumar Giri, the judicial member and Manoj Kumar Aggarwal, the accountant member, set aside the order passed by the lower authorities and restored the assessee’s file to the Commissioner of Income Tax (Appeals) for de novo or fresh adjudication. The tribunal further directed the assessee to substantiate its case. As a result, the appeal was allowed.
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