Case Number: ITA 637/DEL/2021
Appellant: Yuvraj Ahuja, Bareilly
Respondent: ACIT Circle-2, Moradabad
Assessment Year: 2016-17
Case Filed On: 2021-06-01
Order Type: Final Tribunal Order
Date of Order: 2022-08-17
Pronounced On: 2022-08-17
In this detailed review, we delve into the intricacies of ITA No. 637/DEL/2021, where Yuvraj Ahuja contested the service of tax notices and the subsequent assessment orders passed by the ACIT for the assessment year 2016-17. This case highlights significant procedural issues within the tax appeals process, specifically focusing on the service of notices and the right to a fair hearing.
Yuvraj Ahuja, a resident of Bareilly, Uttar Pradesh, filed appeals against the assessment orders passed by the National Faceless Assessment Centre (NFAC) for the assessment years 2016-17 and 2017-18. The appeals were registered under ITA No. 637/DEL/2021 and ITA No. 638/DEL/2021, respectively. Ahuja’s primary grievance was the lack of proper service of the notice of hearing, which he argued denied him a fair opportunity to present his case.
A critical issue in this case was whether the NFAC properly served the notice of hearing to Ahuja. The absence of evidence showing that the notice was served raised questions about the validity of the proceedings and the subsequent orders passed by the NFAC.
Ahuja contended that the failure to serve the notice deprived him of his right to a fair hearing, a fundamental principle in tax law. This argument underscored the importance of procedural fairness and the taxpayer’s right to be heard before any adverse order is passed.
The tribunal, comprising Shri N.K. Billaiya (Accountant Member) and Shri Anubhav Sharma (Judicial Member), examined the case records and heard the submissions of the departmental representative (DR). Notably, no one appeared on behalf of Ahuja despite the notice of the hearing.
The tribunal found no evidence in the records to indicate that the notice of hearing was served to Ahuja. This lack of evidence led to the conclusion that the NFAC dismissed the appeals without ensuring that Ahuja was duly notified and given a chance to present his case.
Emphasizing the need for procedural fairness, the tribunal held that the appeals should be restored to the files of the CIT(A)/NFAC. The tribunal directed that both appeals be decided on their merits after serving a proper notice of hearing to Ahuja and affording him a reasonable opportunity to be heard.
The tribunal concluded that the assessment orders were passed without ensuring that Ahuja was given a fair opportunity to present his case. Consequently, the tribunal set aside the assessment orders and remanded the matters back to the CIT(A)/NFAC with specific directions:
Final Judgment:
In the Income Tax Appellate Tribunal, Delhi Bench ‘H’ New Delhi
Before: Shri N.K. Billaiya, Accountant Member & Shri Anubhav Sharma, Judicial Member
Order:
The appeals filed by Yuvraj Ahuja are allowed for statistical purposes. The assessment orders are set aside, and the matters are remanded back to the CIT(A)/NFAC for fresh adjudication.
Order Pronounced in the Open Court on 17th August 2022.
Signed:
N.K. Billaiya, Accountant Member
Anubhav Sharma, Judicial Member
Date: 17th August 2022
Yuvraj Ahuja vs. ACIT: Dispute Over Tax Notice Service and Appeals
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