DCIT Vs Strawberry Farmer Agro Products (ITAT Delhi)
Ex-parte Assessment Set Aside for Fresh Adjudication – ITAT Upholds CIT(A)’s Power u/s 251(1)(a)
Revenue filed appeal against CIT(A)’s order which had set aside ex-parte assessment framed u/s 147 r.w.s. 144. AO had made additions of ₹2.41 crore & ₹35,287 as unexplained income u/s 69A r.w.s. 115BBE, after assessee failed to respond to notices issued u/s 148A(b), 148 & 142(1).
Assessee explained before CIT(A) that it was unaware of assessment proceedings until receipt of a recovery letter on 22.05.2024, and could not access the order on portal until June 2024. Considering this and in the interest of natural justice, CIT(A) invoked newly amended Section 251(1)(a) (effective 01.10.2024), empowering the appellate authority to set aside an assessment framed u/s 144 and direct the AO to re-do it afresh.
Tribunal observed that the amendment specifically authorizes such action, & since the assessee was denied due opportunity, CIT(A)’s direction for fresh assessment was proper. Accordingly, ITAT held the Revenue’s appeal devoid of merit and dismissed it.
Held: CIT(A) rightly exercised new power u/s 251(1)(a) to set aside ex-parte assessment u/s 144 where natural justice was violated; AO to reframe assessment afresh.
FULL TEXT OF THE ORDER OF ITAT DELHI
