Vikrant Vs ITO (ITAT Delhi)
Duplicate PAN, Faceless Lapses & No Hearing: ITAT Delhi Sets Aside Reassessments for Five Years
Delhi ITAT set aside the reassessment orders passed u/s 147 r.w.s. 144 and restored the matters to the file of the AO for fresh adjudication.
The reassessments were initiated based on information regarding immovable property transactions allegedly undertaken by the Assessee. The AO proceeded on a duplicate PAN, despite the Assessee’s specific contention that all such transactions were already disclosed in returns filed under another valid PAN, and requested deactivation of the duplicate PAN. The assessments were completed ex-parte, computing undisclosed income of ₹26.14 lakh, without properly addressing the Assessee’s explanation.
The CIT(A), NFAC dismissed the appeals for non-compliance, without examining the merits. Before the Tribunal, the Assessee pleaded gross violation of principles of natural justice, improper assumption of jurisdiction u/s 147, non-service of notice u/s 148, and faceless procedure violations. The Revenue did not object to remand.
Considering the totality of facts, the ITAT held that interests of justice require fresh assessment on merits after granting reasonable opportunity to the Assessee, particularly when serious jurisdictional and factual issues relating to duplicate PAN and disclosure of transactions were raised. Accordingly, all five appeals were allowed for statistical purposes with a direction to the Assessee to fully cooperate in the reassessment proceedings.
FULL TEXT OF THE ORDER OF ITAT DELHI
