Inadequate Opportunity of hearing: ITAT restores addition due to Delayed ITR filing matter for fresh adjudication [Read Order]

The Cochin Bench of the Income Tax Appellate Tribunal (ITAT) restored the matter to the CIT(A) for fresh adjudication, holding that the assessee was not afforded sufficient opportunity of hearing in a case addition due to belated filing of return and audit report.

Young Women’s Christian Association (assessee) is a society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955, and also registered under section 12A of the Income Tax Act, 1961.

Want a deeper insight into the Income Tax Bill, 2025? Click here

The assessee filed its return of income for the Assessment Year 2020-2021 on 31.05.2021, declaring income of Rs. 46,100. The return was processed by the Centralized Processing Centre (CPC) vide intimation dated 30.11.2021 determining total income at Rs. 25,48,381.

Read More: ICAI Invites Candidate Feedback on May 2025 CA Final, Intermediate, Foundation & INTT-AT Exam Papers

The CPC made an addition on the ground that the return was filed beyond the due date prescribed under Section 139(1) of the Act and the audit report in Form 10B was also not filed.

Aggrieved by the CPC’s order, the assessee filed an appeal before the Commissioner of Income Tax (appeals) [CIT(A)]. The appeal was dismissed ex parte by the CIT(A), confirming the additions made by the Assessing Officer (AO).

Aggrieved by the order of the CIT(A), the assessee preferred an appeal before the Tribunal. The counsel for the assessee submitted that the CIT(A) passed the order without providing sufficient opportunity.

The Single member bench comprising Inturi Rama Rao (Accountant Member) observed that only one opportunity was granted by the CIT(A), which was inadequate and in violation of the principles of natural justice.

Clear all Your Doubts on RCM, TCS, GTA, OIDAR, SEZ, ISD Etc... Click Here

Read More: Income Tax Return Filing: Complete ITR Form 4 Checklist for AY 2025-26 for Small Business Owners

The tribunal observed that the CIT(A) did not afford assessee with sufficient and reasonable opportunity to represent the matter. Therefore, the tribunal observed that in the interest of justice the matter may be restored to the CIT(A) for fresh adjudication. 

The Tribunal restored the matter to the file of the CIT(A) for fresh adjudication after affording the opportunity of hearing to the assessee. The appeal filed by the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates