Bhavan Ravat Vs CIT (ITAT Lucknow)
Income Tax Appellate Tribunal (ITAT) Lucknow set aside an order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] in the case of Bhavan Ravat for the assessment year 2017-18. The original assessment order, issued under Section 144 of the Income Tax Act, had increased the assessed income to ₹2.11 crore from the returned income of ₹48.36 lakh without providing the assessee a fair chance to present his case. The appellate order from CIT(A) also dismissed the appeal ex-parte, without a detailed examination of the grounds raised by the assessee. The assessee’s counsel argued that both orders were passed without providing reasonable opportunities to be heard and requested a fresh assessment. The Revenue Department did not oppose the plea and left the decision to the tribunal’s discretion.
Considering Section 250(6) of the Income Tax Act, the ITAT held that CIT(A) was obligated to issue a reasoned order addressing the merits of the appeal. Finding procedural lapses in the assessment process, the tribunal set aside the CIT(A) order and remanded the case to the Assessing Officer. It directed the officer to conduct a fresh assessment after affording the assessee a fair hearing. As a result, the appeal was allowed for statistical purposes, ensuring compliance with due process.
