Case Law Details
S.B. Traders Vs ACIT (ITAT Guwahati)
In a crucial ruling, the ITAT Guwahati ordered re-adjudication in the case of S.B. Traders Vs ACIT. The Tribunal held that the Assessing Officer had made additions without granting the assessee ample opportunity to present their case. The decision underlines the importance of fair process in income tax proceedings.
Tribunal noted that both the order of the Assessing Officer and the CIT(A) were issued ex parte, and the assessee was not given a fair chance to defend their position. Despite claims that notices were sent to the assessee via speed post, the assessee asserted that they received no such correspondence. The Tribunal accepted the assessee’s plea for an opportunity to present their case before the Assessing Officer.
This case emphasises the Tribunal’s commitment to ensuring fairness in tax proceedings. It underlines the importance of providing all parties with a reasonable opportunity to present their case, and not rushing to judgement without due process.
FULL TEXT OF THE ORDER OF ITAT GUWAHATI
The present appeal has been preferred by the assessee against the order dated 04.11.2022 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
2. The assessee in this appeal has contested the addition of Rs.5,96,822/- made by the Assessing Officer on the basis of alleged peak credit balance in the bank account of the assessee on 06.12.17 and further addition of Rs.21,22,000/- on account of currency deposited in the bank account of the assessee during demonetization period.
3. At the outset, the ld. Counsel for the assessee has invited our attention the impugned order of the CIT(A) to submit that the same is an ex parte order. The ld. Counsel has further submitted that though the ld. CIT(A) in the impugned order has mentioned that the notices for the date of hearing was sent to the assessee through speed post, however, the assessee did not receive any speed post/letter from the CIT(A). The assessee has also placed reliance upon the certificate issued by the postal department that no such speed post/letter was ever delivered at the address of the assessee. The ld. Counsel for the assessee has further invited our attention to the impugned assessment order to submit that the same is also an ex parte order. He has submitted that the assessee being a small trader was not aware of the nitty-gritty of the income tax proceedings. He therefore has submitted that the assessee may be given an opportunity to present his case before the Assessing Officer.
4. In view of the above submission of the assessee, in our view, the interests of justice will be well-served, if the assessee is given an opportunity to present its case before the Assessing Officer. Accordingly, the impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer for decision afresh. Needless to say that the Assessing Officer will give proper opportunity to the assessee to present its case.
5. In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Kolkata, the 7th June, 2023.
