The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case to the Assessing Officer ( AO ) for fresh adjudication, allowing the assessee to present additional evidence that was not available during the original proceedings.
Alleppy Chits and Profits,appellant-assessee,challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which confirmed an addition of Rs.29,80,450 made by the AO for the Assessment Year (AY) 2012-13. The assessee contended that the AO’s assessment was conducted ex-parte and that the CIT(A) failed to consider its submissions regarding the validity of proceedings initiated under Sections 147/148 of the Act and the merits of the case.
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During the hearing, the assessee’s counsel argued that essential documents, such as the bank statements, inspection requests, and the reasons recorded by the AO for issuing the notice under Section 148, were unavailable during the original assessment and appellate proceedings.
These documents, filed as fresh evidence before the tribunal, were crucial for proper adjudication. The counsel also requested an opportunity for the assessee to represent its case comprehensively before the lower authorities.
A single member bench comprising Madhumita Roy ( Judicial Member ) found the reasons for the non-submission of evidence at earlier stages to be genuine. Recognizing the importance of these documents for a fair resolution, the ITAT admitted the additional evidence and underscored the need to avoid a miscarriage of justice.
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The tribunal, therefore, quashed the CIT(A)’s order and remanded the matter to the AO for fresh adjudication. It directed the AO to consider the additional evidence, along with any further evidence the assessee might produce, and to pass a reasoned order after granting the assessee an opportunity to present its case. The ITAT also clarified that, in the event of non-cooperation by the assessee, the AO would be at liberty to decide the matter in accordance with the law.
Ultimately,the appeal filed by the assessee was allowed for statistical purposes.
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