Jai Prakash Sharma Vs ITO (ITAT Jaipur)
Income Tax Appellate Tribunal (ITAT) Jaipur has directed a fresh hearing in the case of Jai Prakash Sharma vs. Income Tax Officer (ITO) concerning the addition of ₹12,06,189 as undisclosed income for the Assessment Year 2011-12. The dispute arose after the revenue department obtained information that Sharma had sold gems and jewelry worth ₹12,06,189, despite no record of such business activity at his firm, M/s. Konark Impex. Based on this information, a notice under Section 148 of the Income Tax Act was issued on April 16, 2015, but Sharma did not respond. Consequently, the Assessing Officer (AO) assessed the case ex-parte under Sections 144, 143(3), and 147 of the Act, adding the entire amount as undisclosed income. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition due to Sharma’s failure to appear for hearings.
On appeal, ITAT Jaipur reviewed the case and found that Sharma had consistently failed to present his case before both the AO and CIT(A), leading to decisions being made without his representation. Considering the lack of discussion on facts and legal aspects, ITAT deemed it appropriate to remand the case for a fresh hearing. The tribunal directed the CIT(A) to provide Sharma with a fair opportunity to present his case while instructing him to participate in proceedings without seeking adjournments. The appeal was allowed for statistical purposes, and the order was pronounced in open court on December 20, 2024.
