ITAT AHMEDABAD :- ASSESSES ACCOUNTANT LEFT THE JOB: ITAT REMANDED CASES TO ASSESSING OFFICER

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD

Ramakushna Kiritbhai Tripathi

Vs

ITO (ITAT Ahmedabad)

Appeal Number: ITA No. 1023/Ahd/2023

Date of Judgement/Order: 31/01/2024

Background:

Recently, the Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal filed by the Appellant against the order dated 28-09-2023 passed by the National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year : 2012-13 . The judgment underlines the importance of procedural fairness in tax assessment proceedings.

Important Para

Para: – 1 This is an appeal filed against the order dated 28-09- 2023 passed by the National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2012-13.

Para:-2 The grounds of appeal are as under: –

1. learned Commissioner of Income-tax (Appeals) erred in law and on facts in dismissing the appeal of the Appellant
2. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in not providing sufficient opportunity to the appellant.
3. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in forwarding the Notices of hearing through email despite the appellant having mentioned ‘No’ to the communication/notice through email in Form No.35 and that too at the wrong email ID.
4. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in dismissing the appeal of the appellant in limine and without going into the merits in contravention of the provisions of section 250(6) of the Income Tax Act, 1961.
5. The appellant may be allowed to add, amend, alter, or raise additional grounds of appeal. Total Tax Effect N.A.”

Para:-3 The assessee did not file a return of income for assessment year 2012-13. As per the information available, the Assessing Officer observed that the assesse has financial transactions to the tune of Rs.31,20,000/- during the assessment year 2012- 13 and therefore the case of the assesse was reopened. The assessment was reopened in terms of section 147 of the Act by invoking provisions of section 148 of the Act. Consequently, the notice u/s. 148 of the Act was issued and served upon the assesse. Despite issuing several notices, the assesse has not filed any reply/details, and therefore the Assessing Officer made an addition of Rs. 31,20,000/- in respect of the amount credited in the Dena Bank and treated the same as unexplained credit/deposit in the bank account.

Para:-4 Being aggrieved by the assessment order, the assesse filed an appeal before the CIT(A). The CIT(A) dismissed the appeal of the assesse.

Para:-8 Heard both the parties and perused all the relevant materials available on record. In the present assessee’s peculiar case wherein the assessee’s accountant who was looking after the assessee’s case left the job without intimating the notices as well as the assessee not being able to know the intricacies of Income Tax Act and its compliances could not represent his case either before the Assessing Officer or before the CIT(A). The assessee was not able to file the evidences/details and therefore the matter may be remanded back to the file of the Assessing Officer for proper adjudication after taking the evidences/details and deciding the issue on merit. Needless to say, the assessee be given an opportunity to hear by following principles of natural justice.