Proper compliance on part of Assessee during Assessment Stage: ITAT Remands Case for Denovo Adjudication [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) remanded the case of fresh adjudication after noting the assessee’s compliance.

In this case, the assessee, Udayal Hiralal Jain, had appealed against the order by the Commissioner of Income Tax (Appeals) [CIT(A)] under Section 147 of the Income Tax Act, 1961 for the assessment year 2016-17.

The appeal filed by the assessee was dismissed by the CIT(A) by noting that the assessee remained non-compliant even after being provided with multiple opportunities. The assessee did not bring any material on record in support of the grounds of appeal or to refute the findings of the Assessing Officer (AO).

The assessee’s counsel submitted that on the last day of the hearing, when adjournment was sought, it was rejected and the appeal was dismissed.  The assessee’s counsel prayed for restitution of the matter back to  CIT(A) for denovo meritorious adjudication and assured that once the opportunity is awarded to the assessee, necessary compliance would be made.

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The counsel also contended that the impugned orders were passed by violating the principles of natural justice without providing the assessee with an opportunity for a personal hearing. One of the grounds raised by the appeal was that CIT(A) erred in upholding the action AO of issuing notice under Section 148 of the Income Tax Act without any independent application of mind.

After reviewing the orders of lower authorities, the bench noted that the assessee had complied with the requirements at the assessment stage, though the AO did not accept them. In the interest of justice and fair play, the bench remitted the matter back to the file of CIT(A) for denovo meritorious adjudication on the grounds raised by the assessee.

The ITAT also directed the CIT(A) to provide the assessee with a reasonable opportunity of being heard and to make any further submissions, if so desired. The assessee was also directed to be diligent in attending the hearing proceedings. And thus, in conclusion, the grounds taken by the assessee were allowed for statistical purposes. 

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The ITAT Mumbai, comprising Sandeep Singh Karhail (Judicial ember) and Girish Agrawal (Accountant Member), allowed the assessee’s appeal for statistical purposes. 

To Read the full text of the Order CLICK HERE

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