The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, heard the appeal filed by Usman against the order passed by the Income Tax Officer (ITO), Ghaziabad. The appeal, ITA No. 374/DEL/2021, pertains to the assessment year 2014-15 and was filed on 01/04/2021. The final order was pronounced on 23/06/2022.
Usman, a resident individual from Meerut, challenged the reassessment order issued by the ITO under Section 143(3) of the Income Tax Act, 1961. The order in question was dated 29/12/2016, and the appeal was subsequently filed on 01/04/2021.
The reassessment was initiated due to the rejection of the books of accounts by the Assessing Officer (AO) and the application of an 8% profit rate on the declared turnover under Section 44AD of the Act. The AO’s order was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)], leading to the current appeal.
The counsel for the assessee, Shri R.K. Garg, argued that the notices sent by the CIT(A) were not properly served, resulting in an ex parte decision. The assessee claimed that the notices were returned by postal authorities due to an insufficient address, and thus, he was unaware of the proceedings and could not present his case.
The Departmental Representative, Ms. Abhishek Kumar, Sr. DR, supported the findings of the AO and CIT(A), arguing that the notices were duly issued but not complied with by the assessee.
The Tribunal, comprising Shri Saktiijit Dey, Judicial Member, and Pradip Kumar Kedia, Accountant Member, found merit in the arguments presented by the assessee. It was noted that the CIT(A) had proceeded to dispose of the appeal ex parte without proper service of notices to the assessee.
The Tribunal quashed the reassessment order, remanding the matter back to the file of the CIT(A) for fresh adjudication. The Tribunal directed the assessee to provide his current address to ensure proper service of notices for future proceedings. The appeal was allowed for statistical purposes, enabling the assessee to present his case fully and comply with the assessment requirements.
The appeal was allowed for statistical purposes, with the reassessment order being set aside and the matter remanded back to the CIT(A).
Order pronounced in the open court on 23/06/2022.
Signed by:
(Pradip Kumar Kedia) – Accountant Member
(Saktiijit Dey) – Judicial Member
Date: 23 June, 2022
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
ITA No. 374/DEL/2021 – Usman vs ITO, Ghaziabad – Reassessment Order for AY 2014-15
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