Anuj Tiwari Vs ACIT (ITAT Indore)
ITAT Indore: Assessments Based on 132A/133A Material Quashed for Non-Supply of Evidence; Penalties Upheld
The Income Tax Appellate Tribunal delivered a split verdict in a batch of 13 appeals filed by the assessee for AYs 2015-16 to 2021-22, involving both quantum and penalty proceedings.
On Quantum Appeals:
The Tribunal held that the assessments framed under sections 144/143(3) read with 153A, based on material allegedly received under section 132A and collected during survey under section 133A, were vitiated due to violation of principles of natural justice. The Revenue failed to demonstrate that the relied-upon material (including seized/impounded documents) was ever supplied to the assessee, despite repeated requests (as evidenced by reminders placed on record). Mere recording of statements during survey was held insufficient to substitute the statutory requirement of furnishing the underlying material forming the basis of additions.
Accordingly, the ITAT set aside the impugned assessment and appellate orders and remanded the matters to the Assessing Officer with directions to:
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supply all relied-upon material to the assessee,
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grant adequate opportunity of hearing, and
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frame fresh assessments in accordance with law.
These quantum appeals were allowed for statistical purposes.
On Penalty Appeals:
In contrast, the Tribunal upheld penalties imposed under sections 271(1)(b) / 272A(1)(d) for failure to comply with notices under section 142(1). The plea that non-supply of material prevented compliance was rejected, noting that the assessee did not even file basic replies or respond to show-cause notices. Consequently, the penalty appeals were dismissed.
FULL TEXT OF THE ORDER OF ITAT INDORE
