The case of Devender Kumar, resident of Ghaziabad, involves an appeal against the ex-parte assessment order by the ITO Ward-1(2), Ghaziabad. Originating from a significant credit entry noticed by the A.O. during the assessment year 2009-10, the case brings forth substantial procedural lapses, including non-receipt of statutory notices, which led to an ex-parte assessment under section 144/147 of the I.T. Act, 1961.
The Income Tax Department, acting on AIR information, noted an unexplained credit entry in the bank account of Devender Kumar and initiated a scrutiny under section 148. Despite issuing several notices, the assessee did not respond, resulting in an ex-parte assessment. The non-compliance was mainly attributed to the non-receipt of notices by Kumar, a contention that formed the core of his subsequent appeals.
The appeal to the CIT(A) was marked by delays and a lack of communication about the assessment order, which the assessee learned about inadvertently through his bank. The CIT(A) dismissed the appeal ex-parte for being time-barred, ignoring the pleas regarding non-receipt of the assessment order and notices.
The ITAT took a significant stance on procedural fairness and the principles of justice. The tribunal criticized the CIT(A) for dismissing the appeal without a proper hearing and on mere technical grounds of delay. Citing precedence, the tribunal emphasized the need to balance substantive justice against technical lapses, advocating for the assessment’s reevaluation on merits and procedural correctness.
The tribunal, led by Judicial Member Shri Chandra Mohan Garg, acknowledged the procedural missteps and directed the CIT(A) to revisit the appeal, ensuring a fair hearing. The case was set aside with a direction to consider the substantive issues afresh, marking a victory for procedural justice over rigid technicalities.
This case highlights the critical aspects of tax law, particularly the impact of procedural errors and the rights of the taxpayer against the administrative oversights of the tax authorities. It underscores the importance of adhering to the principles of natural justice and ensuring taxpayer rights are not sidelined by procedural technicalities.
Appeal Against Ex-Parte Assessment for A.Y. 2009-10: Devender Kumar vs. ITO Ward-1(2), Ghaziabad
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