Opportunity to be Heard Ensures no Prejudice to Revenue in Assessee's Submission: ITAT [Read Order]
The ITAT highlighted the importance of natural justice and directed the CIT(A) to issue proper notice to the assessee and consider the submissions before passing a new order
![Opportunity to be Heard Ensures no Prejudice to Revenue in Assessees Submission: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/11/ITAT-ITAT-Ahmedabad-Income-Tax-Appellate-Tribunal-ITAT-on-ensuring-no-prejudice-to-revenue-Taxscan.jpg "Opportunity to be Heard Ensures no Prejudice to Revenue in Assessees Submission: ITAT [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) ruled that giving the assessee an opportunity to be heard would not cause prejudice to the revenue, and remanded the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication. Ashadeep Industries, appellant-assessee,appealed against the order dated 20.02.2024 passed by the CIT(A), National...
The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) ruled that giving the assessee an opportunity to be heard would not cause prejudice to the revenue, and remanded the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication.
Ashadeep Industries, appellant-assessee,appealed against the order dated 20.02.2024 passed by the CIT(A), National Faceless Appeal Centre ( NFAC ), for the Assessment Year ( AY ) 2007-08.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The assessee appealed against the CIT(A)'s confirmation of the penalty under section 271(1)(c), arguing that the CIT(A) failed to consider the merits and submissions. The CIT(A) incorrectly claimed non-compliance with the hearing notice, despite the late receipt of the notice and a submitted adjournment request. The penalty order was passed without addressing the request, and the assessee sought its cancellation.
The key facts for the case were that the CIT(A) issued a hearing notice on 08.02.2024, with a compliance deadline of 12.02.2024. Due to limited time, the assessee requested an adjournment to 27.02.2024. However, the CIT(A) passed the order on 20.02.2024, without considering the adjournment request.
It was argued that this denied the assessee a fair chance to be heard and violated the principles of natural justice. The Counsel stated that the assessee would comply with the requirements if given the opportunity and the DR agreed to this.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The two member bench comprising Dr.BRR Kumar ( Vice President ) and Suchitra Kamble ( Judicial Member ) decided that giving the assessee an opportunity to be heard would not cause prejudice to the revenue. The matter was remanded to the CIT(A) to pass a fresh order after issuing proper notice to the assessee. The assessee was instructed to comply with the notices without requesting unnecessary adjournments.
In short, the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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