This article provides an in-depth analysis of ITA No. 1436/DEL/2020, a case involving Narendra Kumar Saini of New Delhi and the Income Tax Officer (ITO) Ward 62(5), New Delhi. The case pertains to the assessment year 2016-17 and was filed on July 23, 2020. The final tribunal order was pronounced on July 22, 2022.
Narendra Kumar Saini, residing at 2563-64, Gali No.10, Bhagat Singh Gali, Chuna Mandi, Paharganj, New Delhi, appealed against the assessment order for the assessment year 2016-17. The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘E’, with Shri C.M. Garg serving as the Judicial Member and Shri Anadee Nath Misshra as the Accountant Member. The appeal was related to the assessment and the subsequent penalty proceedings.
The appellant originally filed a return of income for the assessment year 2016-17. The case was selected for scrutiny, and the assessment was framed under section 143(3) of the Income Tax Act, resulting in several additions and the imposition of penalties.
The primary issue in this case was the alleged lack of due opportunity of hearing provided to the assessee during the assessment proceedings, which led to the non-filing of some relevant documents.
The appellant, represented by Shri Akshay Bhatia, argued that the assessee was not allowed due opportunity of hearing before the Assessing Officer (AO). This resulted in the non-filing of some relevant documents during the assessment proceedings. The appellant also contended that the Commissioner of Income Tax (Appeals) [CIT(A)] passed the impugned order in haste without allowing due opportunity of hearing to the assessee to enable him to explain his stand on the grounds raised in Form No.35. The appellant requested the Tribunal to restore the appeal to the file of the AO for a fresh hearing, allowing due opportunity to the assessee.
The respondent, represented by Ms. Ritu Singh Sharma, Senior Departmental Representative (DR), fairly conceded that the assessee was not given due opportunity of hearing before the lower authorities and had no objection to restoring the appeal to the file of the AO for a fresh hearing.
The ITAT bench, after considering the arguments and perusing the relevant material available on record, found it just and proper to restore the matter to the file of the AO for a denovo adjudication. The Tribunal directed that due opportunity of hearing should be provided to the assessee during the fresh assessment proceedings.
The Tribunal noted the submissions of both the appellant and the respondent, emphasizing the importance of providing due opportunity of hearing to the assessee. The Tribunal directed the AO to conduct a fresh hearing, ensuring that the assessee is given ample opportunity to present relevant documents and explain his stand.
The Tribunal allowed the appeal filed by Narendra Kumar Saini for statistical purposes only, emphasizing the need for a fair and just assessment process that includes proper hearing opportunities for the assessee.
The ITAT concluded that the penalties imposed by the AO and affirmed by the CIT(A) were not justified due to the lack of due opportunity of hearing provided to the assessee. The Tribunal allowed the appeal of Narendra Kumar Saini and directed a fresh hearing with due opportunity for the assessee.
This case underscores the importance of providing a fair hearing opportunity to taxpayers during assessment proceedings. It highlights the necessity of allowing taxpayers to present all relevant documents and explanations before finalizing the assessment. The decision also reiterates the Tribunal’s role in ensuring the fair application of tax laws and procedures.
For taxpayers, this case serves as a reminder to ensure that all relevant documents are filed and all explanations are provided during assessment proceedings. It emphasizes the importance of procedural compliance and the right to a fair hearing.
In conclusion, the decision in ITA No. 1436/DEL/2020 reaffirms the critical role of due opportunity of hearing in the assessment process and highlights the Tribunal’s commitment to upholding the principles of natural justice in tax adjudication.
Narendra Kumar Saini vs. ITO Ward 62(5): Appeal Hearing for AY 2016-17 – ITA 1436/DEL/2020
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform