ITAT Delhi Overturns Assessment Order Passed without Assessee’s Opportunity

Satish Vs ACIT (ITAT Delhi)

Introduction: In the noteworthy case of Satish vs ACIT, the Income Tax Appellate Tribunal (ITAT) Delhi set aside an assessment order passed by the Assessing Officer (AO) without giving the assessee an opportunity to respond. The order was passed under Section 147 of the Income Tax Act, 1961, for the assessment year 2012-13. This article explores the case’s intricate details, the critical arguments put forward, and the legal implications of the ITAT Delhi’s final decision.

Analysis: The issue in contention was the manner in which the AO had passed the assessment order without allowing the assessee the time mentioned in the statutory notice under Section 142(1) of the Act. The counsel for the assessee argued that the AO’s action resulted in serious prejudice, as the assessment order was passed even before the response date stipulated in the notice.

On hearing the arguments, the ITAT Delhi found merit in the assessee’s contention. The Tribunal held that it was impermissible for the assessment order to precede the appointed response date under Section 142(1) of the Act. As a result, the ITAT Delhi set aside the order of the AO and remitted the matter back to the AO designated for assessment, ensuring that a proper opportunity would be given to the assessee to defend the case on all legal and factual points.

Conclusion: The case of Satish vs ACIT highlights the ITAT’s firm commitment to procedural fairness, emphasizing that every taxpayer should be given a reasonable opportunity to respond before passing an assessment order. This ruling sets a vital legal precedent, reinforcing the notion that compliance with statutory notices is crucial for preserving the integrity of the assessment process. Consequently, the appeal of the assessee was allowed for statistical purposes, and a fresh order will be passed in accordance with law after providing a reasonable opportunity to the assessee.

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