Mayank Raghuvansh Vs ITO (ITAT Indore)
Indore bench of the Income Tax Appellate Tribunal (ITAT), in the case of Mayank Raghuvansh vs. ITO, has set aside an ex-parte assessment order passed under Section 144 of the Income Tax Act, 1961, for the Assessment Year 2017-18. The assessee, who had not filed a return of income, was assessed at ₹7.86 lakh on a substantive basis and ₹9 lakh on a protective basis. The CIT(A) upheld the order and rejected additional evidence filed under Rule 46A. The assessee argued before the Tribunal that both the assessment and appellate orders were passed in violation of the principles of natural justice, and the CIT(A) erred in not admitting the additional evidence, which included documents showing agricultural income and family bank accounts.
During the hearing, the assessee submitted a paper book and a Rule 29 application seeking to admit new evidence. The Department’s representative also fairly conceded that the matter warranted fresh examination by the Assessing Officer (AO). Taking note of the ex-parte nature of the original assessment and the subsequent procedural lapses, the Tribunal found merit in remanding the matter. It held that the CIT(A), being a quasi-judicial authority, failed to adjudicate the appeal on merits and did not apply proper reasoning in rejecting the additional evidence.
Accordingly, the Tribunal set aside the CIT(A)’s order and remanded the matter to the AO for a fresh assessment after proper verification of the evidence. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT INDORE
