ITAT quashes Order since AO has failed to provide the Copies of relied Statements [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai bench has quashed the assessment order for the reason thatthe Assessing Officer has failed to provide the copies of statements on which he relied on for making assessments.

Assessing Officer rejected the return by observing that assessee has claimed exemption under section 10(38) of the Act on the huge long term capital gain from the sale of scrip MJTL, based on the above observations Assessing Officer discussed in detail the investigations made by the investigation wing (Kolkata) and narrated the modus operandi operatedby these operators in his order.

The Tribunal comprising Shri S. Rifaur Rahman, Accountant Member and Shri Amarjit Singh, Judicial Member has noted the fact that assessee was not extended of any opportunity of cross examination and the assessment was completed within two days of issue of above said show-cause notice, it indicates that Assessing Officer was in hurry to complete the assessment and formed preconceived opinion without even affording a proper opportunity to the assessee. It is in fact against the concept of natural justice.

Quashing the order, the Tribunal held that “Facts and circumstances being identical respectfully following the decision of the Hon’ble Supreme Court, we hold that the assessment order passed u/s. 143(3) of the Act by the Assessing Officer is bad in law and has to be quashed as the Assessing Officer has failed to provide the copies of statements on which he relied on for making assessments and also for not providing cross examination of those persons inspite of specific request made by the assessee. Thus, we quash the assessment orders passed u/s. 143(3) of the Act on this ground.”

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