Both assessee & AO should be given opportunity of being heard

DCIT Vs Ratandeep Gold & Diamond Pvt. Ltd (ITAT Varansi)

ITAT Varanasi held that principles of natural justice demand that both the parties, i.e. assessee as well as AO, shall be given opportunity of being heard, before being condemned and any prejudice is caused. Impugned order not satisfying the same is liable to be set aside.

Facts- Post conduct of survey, AO issued notice to the assessee asking on the basis of data retrieved from the computer and recorded statements, undisclosed profit should not be treated as unaccounted income under section 69 of the Income Tax Act.

Further, AO also contested that difference of Rs. 43 Lacs figured out under the head furniture and fixture should not be treated as unexplained investment under section 69 of the Income Tax Act.

CIT(A) accepted the appeal filed by the assessee. Accordingly, being aggrieved, revenue has preferred the present appeal.

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