ITAT sets aside CIT(A) Order for Violating Natural Justice, Directs Fresh Adjudication u/s 250(6) [Read Order]

Chennai Bench of the Income Tax Appellate Tribunal (ITAT) set aside the order passed by the Commissioner of Income Tax (Appeals) for the assessment years 2018-19 to 2020-21, noting that the Commissioner of Income Tax (Appeals) failed to consider the written submissions filed by the assessee and passed the order in haste, violating the principles of natural justice.

Law and Procedure for Filing of Appeals

The assessee,  S. Kalpana, had filed an appeal against the order of the Commissioner of Income Tax (Appeals) for the assessment years 2018-19 to 2020-21. m

R. Venkatesh,counsel representing the assessee argued that, as a  response to a hearing notice dated 26.04.2024 from the CIT(A) ofne impugned order was passed on 28.05.2024. However, the CIT(A) did not take these submissions into account and hurriedly issued the order, which the assessee argued was a violation of natural justice.. ,Law and Procedure for Filing of Appeals

Two member Bench comprised of Aby T Varkey(Judicial Member) and Manoj Kumar Agarwal(Accountant Member) after reviewing the orders of the. CIT(A), the Bench observed that the CIT(A) passed the impugned order based on the fact that the assessee did not respond to several notices. However, the CIT(A) did not mention the written submission uploaded by the assessee on 22.05.2024, which was submitted before the order was passed on 28.05.2024.

The tribunal highlighted a violation of natural justice, as the  CIT(A) failed to acknowledge the submissions, despite their timely filing. The ITAT emphasized that the case should be decided in accordance with Section 250(6) of the Income Tax Act, 1961, which mandates that the appellate authority consider all submissions and allow the assessee a chance to be heard before passing an order.

Law and Procedure for Filing of Appeals

 The CIT(A) failed to consider this submission, which the Bench  found as a violation of natural justice. As a result, we set aside the impugned orders and send the matter back to the CIT(A) for reconsideration. The CIT(A) is directed to review the written submissions made on 22.05.2024, and if the assessee wishes to be heard, the CIT(A) should provide an opportunity for a hearing and issue a detailed order in accordance with the law.

In Conclusion,the appeal was allowed for Statistical Purposes.

To Read the full text of the Order CLICK HERE

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