Case Number: ITA 5804/DEL/2019
Appellant: Siri Ram Sethi (HUF), New Delhi
Respondent: ITO Ward-36(5), New Delhi
Assessment Year: 2011-12
Result: Appeal allowed for statistical purposes
Case Filed on: 2019-07-03
Order Type: Final Tribunal Order
Date of Order: 2019-09-26
Pronounced on: 2019-09-26
This appeal by the assessee, Siri Ram Sethi (HUF), pertains to the assessment year 2011-12 and is directed against the order dated 22.05.2019 passed by the Commissioner of Income-tax (Appeals)-12, New Delhi. The appeal was heard and pronounced on 26th September 2019 before the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC’, New Delhi.
The appellant, Siri Ram Sethi (HUF), challenged the exparte assessment order passed by the Assessing Officer (AO) under Sections 144/147 of the Income Tax Act, 1961. The assessment was completed on 07.12.2018 without giving sufficient opportunity to the assessee to substantiate its case. Notices under Section 142(1) were issued on 18.10.2018, 02.11.2018, and a final notice on 29.11.2018. However, the assessee could not comply due to the death of the Karta of the HUF on 19.04.2018.
The primary ground of appeal was that the AO completed the assessment exparte without giving the assessee sufficient opportunity to present its case. The assessee argued that due to the death of the Karta, the notices were unattended, leading to the exparte order. During the appellate proceedings, the assessee submitted all relevant documents and information to substantiate its claim, but the CIT(A) mentioned that no evidence was provided to prove that the business of M/s Travel Solutions had been transferred.
The tribunal noted that the AO completed the assessment under Sections 144/147 exparte without giving sufficient opportunity to the assessee. The tribunal found merit in the contention that the Karta of the HUF had passed away, which led to the non-compliance with the notices. The assessee’s representative argued that all relevant documents were submitted during the appellate proceedings, but the CIT(A) did not consider them.
The tribunal, in the interest of justice, decided that the issues in dispute require fresh adjudication at the level of the AO. The tribunal remitted the issues back to the AO with directions to decide the same afresh, after giving adequate opportunity of being heard to the assessee and considering all the evidence submitted by the assessee.
The tribunal directed the assessee to fully cooperate in the assessment proceedings before the AO and to submit any evidence for substantiating its claim. The tribunal also directed the assessee not to take any unnecessary adjournments during the proceedings.
The tribunal allowed the appeal for statistical purposes, directing the AO to conduct a fresh adjudication of the issues after providing adequate opportunity to the assessee to present its case. The tribunal emphasized the need for the assessee to cooperate fully and provide all necessary evidence to substantiate its claims.
Order Pronounced in Open Court on 26th September, 2019.
Signed:
H.S. Sidhu, Judicial Member
Dated: 26th September, 2019
SRB
Copy Forwarded to:
Assistant Registrar, ITAT, New Delhi
Siri Ram Sethi (HUF) vs ITO Ward-36(5): Exparte Order Assessment under Section 144/147
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