Parmod Kumar Negi Vs ITO (ITAT Chandigarh)
ITAT Chandigarh: Best-Judgment Assessment Treating Agricultural Income as ‘Other Sources’ Set Aside for Fresh Opportunity
The Income Tax Appellate Tribunal allowed the assessee’s appeal for AY 2018-19 for statistical purposes, restoring the matter to the Assessing Officer for de novo assessment.
In the original proceedings, the AO had completed a best-judgment assessment under section 144 and treated the assessee’s declared agricultural income of ₹33.24 lakh as income from other sources, citing non-compliance by the assessee. The CIT(A) upheld the assessment on the same grounds.
Before the Tribunal, the assessee sought one more opportunity of hearing to substantiate the claim of agricultural income. Considering the principles of natural justice, the ITAT accepted the request and held that the assessee should be given a fair chance to plead and prove the case.
Accordingly, the Tribunal set aside the assessment and remanded the matter to the AO with directions to frame a fresh assessment after granting due opportunity to the assessee. The appeal was thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
1. Aforesaid appeal by assessee for Assessment Year (AY) 2018- 19 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 22-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 23-05-2021. In the assessment order, Ld. AO made considered agricultural income of Rs.33,24,120/- as income from other sources for non-compliance by the assessee. The Ld. CIT(A) confirmed the assessment for the same very reasons. The only prayer of Ld. AR is another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.
