Ex parte Order passed u/s 250 of the Income Tax Act without Providing Reasonable Opportunity: ITAT directs Readjudication [Read Order]

In a significant case, the Amritsar bench of the Income Tax Appellate Tribunal (ITAT) ex parte order passed under section 250 of the Income Tax Act, 1961 without providing a reasonable opportunity

Late Sh. Ashok Kumar Goel through the Legal Heir Sh. Sahil Goel Hoshiarpur, the assessee challenged the order of the Commissioner of Income Tax (Appeals), NFAC, the order passed under section 250 of the Income Tax Act 1961.

The assessee was running a business in the name of M/s Goel Ice Mills, Una Road, Near Shimla Pahari Chowk, Hishiarpur. After due verification, the Assessing Officer (AO) ascertained that the undeclared income was Rs.2,84,438/- related to the assessee’s business.

The assessee declared his income as Rs.2,84,438/- as proprietor of M/s Goel Ice Mill. The AO added back the income under section 144 in the hands of the assessee. The CIT(A) upheld the order of the AO.

The main allegation was that the assessee said the mill is avoiding tax (both income tax as well as sales tax). After obtaining approval under section 133(6) of the Income Tax Act, 1961 assessee was asked on 17.01.2019, to "furnish a certified copy of PAN along with the ITRs of the firm for the last six year i.e. 2012-13 to 2017-18 and if not filed then why the income of M/s God ice Mills, Prop Sh. Ashok Kumar Una Road, Hoshiarpur was to be treated as the Income the firm.

The assessee’s case is adjudicated in ex parte in both the appeal and assessment. The assessee has placed an adjournment petition before the CIT(A) but the  CIT(A) was never treated and had not allowed the adjournment. 

A two-member bench comprising of  Dr M L Meena, Accountant Member and Anikesh Banerjee, Judicial Member, observed that the assessee specifically mentioned the denial of reasonable opportunity. It was held that the assessee should get another opportunity to submit his documents before the revenue authorities. The CESTAT remitted the matter back to the CIT(A) for further adjudication de novo.

To Read the full text of the Order CLICK HERE

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