Aditya Saini Vs ITO (ITAT Jaipur)
Short Notice Amid Audit Deadlines- Professional Busy with Tax Audits – Tribunal Condones Non-appearance & Remands Case for De Novo Assessment
Assessee, engaged in online trading of ladies’ kurtis through platforms like Amazon, Flipkart & Meesho, filed return declaring income of ₹5,09,400 on turnover of ₹94.66 lakh. The case was selected for scrutiny due to high commission expenses & low profit ratio. AO made additions on account of alleged suppression of sales & commission discrepancies based on information collected u/s 133(6), which was never shared with Assessee.
In appeal, CIT(A)-NFAC issued three e-notices (13.09.2024, 23.09.2024 & 03.10.2024) within a span of twenty days, during the peak audit season when Assessee was under medical treatment. As there was no response, the appeal was dismissed ex parte for non-prosecution.
Before Tribunal, Assessee contended that the ex parte dismissal violated principles of natural justice, since the main assessment itself was made without giving fair opportunity, and the short notice period prevented compliance. It was also submitted that AO used third-party information without confronting Assessee. Assessee sought one more opportunity to represent his case before AO.
Tribunal observed that both the assessment & appellate proceedings suffered from lack of effective hearing. CIT(A) dismissed the appeal mechanically without appreciating that Assessee was under treatment & professional engagements during the short notice period. Tribunal emphasized that “nobody’s rights can be curtailed without a fair hearing” & relied on the principle of audi alteram partem.
