Royalux Lighting LLP Vs Assessment Unit (ITAT Delhi)
Assessment Passed Without Considering Reply Set Aside: Delhi ITAT Restores Matter to AO for De-Novo Adjudication
Delhi ITAT set aside the assessment order passed u/s 143(3) r.w.s. 144B and the consequential NFAC order, holding that the AO failed to consider the Assessee’s replies before completing the assessment, in violation of principles of natural justice.
The Assessee had filed its return declaring income of ₹19.32 lakh. The AO completed assessment making an addition of ₹22.70 lakh. During the course of faceless assessment, the Assessee had filed detailed replies on 18.03.2024 and 19.03.2024, however, the assessment order was passed on 21.03.2024 without considering those replies.
The Tribunal noted that despite the Assessee’s submissions being available on record, the AO proceeded to pass the order in haste. Further, the CIT(A), NFAC also failed to adjudicate the appeal on merits after granting effective opportunity of hearing.
Holding that such an approach vitiates the assessment proceedings, the ITAT restored the matter to the file of the AO with a direction to frame the assessment afresh after duly considering the Assessee’s replies and after providing proper opportunity of being heard.
Result: Appeal partly allowed for statistical purposes; matter remanded to AO for de-novo assessment.
FULL TEXT OF THE ORDER OF ITAT DELHI
