Savitri Devi Vs ITO (ITAT Delhi)
Assessment u/s 144/147 Set Aside—CIT(A) Wrongly Relied on Remand Report of Another Year; PAN Deactivation & Non-Service of Notice Ignored
Assessee’s PAN AGZPD4853H was deactivated by the Department. AO issued notices on a different PAN (AGGPD6250R), resulting in no service of notices and consequently non-compliance. AO completed best-judgment assessment u/s 144/147 on 28.11.2019, adding ₹23,35,532 (cash deposits ₹23,07,500 + other income) as unexplained.
Before CIT(A), Assessee explained that PAN was deactivated, notices were never received, and source of cash deposits related to hosiery/stitching business. CIT(A) called for a remand report but used the remand report of AY 2011-12, not the year under appeal, and dismissed the appeal on that basis.
Tribunal held:
- CIT(A) committed a fundamental error by relying on a remand report of a different assessment year.
- Each AY is separate, and facts of AY 2012-13 were never verified.
- Assessment was completed ex parte u/s 144; therefore, fresh opportunity is mandatory.
- Non-service of notices due to PAN deactivation was a valid grievance.
Accordingly, the entire matter is restored to AO for de novo assessment, with direction to give proper opportunity. Assessee also directed to remain vigilant and comply with notices.
FULL TEXT OF THE ORDER OF ITAT DELHI
