Failure to Consider Service of Notices and Submissions Made by Assessee: ITAT Remands Matter to CIT(A) [Read Order]

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter to the Commissioner of Income Tax(Appeals) [CIT(A)] for a fair review, highlighting the failure to consider the service of notices and the submissions made by the assessee,

Shantilal R Patel,appellant-assessee,was a teacher in Lunawada, Gujarat, and a Trustee at Shital Education Trust. After a survey on 27.02.2019, notices were issued under sections 148, 142(1), and 143(2) of the Act. The assessee submitted the required documents, but the Assessing Officer(AO) did not accept the explanation.

As a result, the income was increased to Rs. 28,41,590/- in the assessment order dated 30.11.2019. The AO added Rs. 19,26,662/- and also treated Rs. 5,50,000/- from trustee remuneration as unexplained money under section 69 of the Act.

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The assessee appealed before the CIT(A) dissatisfied with the order of the Assessing officer(AO), where the CIT(A) dismissed the appeal.

The assessee’s counsel stated that the CIT(A) did not give a chance to submit proper evidence or hear the assessee before passing the order. The counsel requested that the case be sent back to the CIT(A) for a fair review of the issues with all evidence considered. The Revenue Counsel supported the assessment order and the CIT(A)’s decision.

A single member bench comprising Suchitra Kamble(Judicial Member) heard both parties and reviewed the records. It noted that the CIT(A) did not consider the service of notices to the assessee or the submission made on 03.06.2023.

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Therefore, the tribunal decided to send the case back to the CIT(A) for a fair review, considering the evidence and submissions on merits and it also ensured that the assessee is given a chance to be heard, following Natural Justice principles. The appeal was partly allowed for statistical purposes.

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