The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC’ (2) delivered its judgment on the appeal filed by Hemant Mittal against the order of the Commissioner of Income Tax (Appeals), Hisar, dated 25th March 2019. The case was heard by Ms. Suchitra Kamble, Judicial Member, and Shri Prashant Maharishi, Accountant Member, through video conferencing.
Hemant Mittal filed an appeal against the order passed by the CIT(A)-Hisar for the assessment year 2010-11. The appellant contested several grounds, including the action under section 147 of the Income Tax Act and the jurisdictional issue regarding the issuance of the notice under section 147 by ITO Ward-5 and the order passed by ITO Ward-2.
The Tribunal admitted additional grounds raised by the appellant, which questioned the jurisdiction and validity of the assessment proceedings. The Tribunal observed that the Assessing Officer issued the notice under section 143(2) on the same day the return was filed, without adequate time to apply his mind to the return. The Tribunal cited several decisions, including those from the Delhi High Court, to support its finding that such a notice is invalid.
The Tribunal noted that the AO must consider it necessary or expedient to issue a notice under section 143(2) after examining the return filed by the assessee. Issuing a notice on the same day as the return filing, along with a questionnaire, indicated a mechanical approach rather than an application of mind.
The Tribunal concluded that the assessment order passed by the AO was invalid due to the improper issuance of the notice under section 143(2) and quashed the assessment order dated 28/12/2016. The appeal was allowed on jurisdictional grounds, and other grounds of appeal were dismissed as not adjudicated.
Order pronounced in the open court on 27th May 2020.
sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER
sd/- (PRASHANT MAHARISHI) ACCOUNTANT MEMBER
Date: 27/05/2020
AK Keot
Copy forwarded to:
ASSISTANT REGISTRAR, ITAT, New Delhi
ITA 5161/DEL/2019: Hemant Mittal vs ITO Ward-2, Hisar – Appeal Allowed on Jurisdictional Grounds
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