Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (‘CIT(A)’ in short) dated 15.12.2022 arising from the assessment order dated 11.11.2019 passed by the Assessing Officer (AO) under Section 144 r.w. Section 147 of the Income Tax Act, 1961 (the Act) concerning AY 2012-13.
2. As per the grounds of appeal, the assessee has raised multiple grounds and has inter alia submitted that order passed by the AO under Section 147 of the Act is bad in law inasmuch as the assessment order was passed without giving opportunity to the assessee.
3. When the matter was called for hearing, the ld. counsel for the assessee at the outset adverted to the notice dated 31.10.2019 for the Assessment Year 2012-13 in question and pointed out that as per the aforesaid notice the date of hearing was fixed for 14th November, 2019 at 11.30 a.m. However, the assessment order was passed on 11.11.2019 without waiting for the response to the notice under Section 142(1). The ld. counsel thus submits that a serious prejudice has been caused by the Assessing Officer in passing the order without allowing the assessee to avail the time mentioned in statutory notice under Section 142(1) of the Act. The ld. counsel thereafter submits that there are many other legal and factual grounds to assail the action of the lower authorities.
4. We straightaway find merit in the preliminary contention of the assessee towards lack of opportunity in the light of the date mentioned in the notice issued under Section 142(1). The assessment order has preceeded the appointed date for response under Section 142(1) of the Act. Glaringly, it is not permissible. Thus, on this point alone, we set aside the order of the Assessing Officer and remit the matter back to the file of the Assessing Officer designated for assessment. Proper opportunity shall be given to the assessee to defend its case on all points of law and facts involved. The Assessing Officer shall pass a fresh order in accordance with law after giving a resonable opportunity in this regard.
5. In the result, the appeal of the assessee is allowed for stastical purposes.
Order pronounced in the open Court on 13/06/2023
