AO & CIT(A) Denied Hearing in Income Tax Assessment: ITAT Directs De Novo Speaking Order for ₹17L Addition u/s 69A [Read Order]
The ITAT set aside the order of AO due to denial of hearing opportunity for income Addition under section 69A and restored the matter.
The Income Tax Appellate Tribunal(ITAT), Lucknow bench, directed an Assessment officer (AO) to issue a De Novo Speaking Order for addition of ₹17,94,286 under section 69A of Income Tax Act, 1961, noting that opportunity to be heard was denied by AO and Commissioner of Income Tax (Appeals) ( CIT(A) ).
The appellant, Abha Patel, a resident of Kanpur, filed her return of income on 30.08.2018 declaring a total income as ₹7,02,280. Later on 29.11.2022, the appellant revised her return of income and declared a total income of ₹13,11,780.
The Assessment officer declared the total income as ₹31,06,067 and passed an assessment order under section 147 read with section 144/144B of the Income Tax Act, 1961.
An addition of ₹17,94,286 was declared under section 69A of the income tax act, on the ground that the appellant failed to provide an explanation regarding the nature and source of the income. The assessment order was passed ex parte in the absence of the appellant.
The appellant contended that in the appeal filed before CIT(A) against the assessment order, an impugned order was passed by CIT(A) without providing an opportunity of hearing.
Before the ITAT, there was no representation made by the appellant. The counsel representing the respondent, Amit Kumar was heard and the material on record was perused.
Anadee Nath Misshra, Accountant member, observed that the Assessing officer and CIT(A) did not provide a reasonable opportunity of being heard to the appellant.
Accordingly, the tribunal directed the Assessing Officer to restore the issue relating to the addition of ₹17,94,286 and to pass de novo speaking order on the merits of the case after providing a reasonable opportunity to be heard.
In the light of facts and circumstances, the tribunal partly allowed the appeal for statistical purposes and set aside the order passed by CIT(A).
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