This document provides a detailed analysis of the Income Tax Appellate Tribunal’s final decision on the case between Ankit Sharma, Meerut and ITO, Ward-1(1), Meerut, concerning the assessment year 2012-13. The case number is ITA 2569/DEL/2022, presided over by Judicial Member Shri C.M. Garg.
The appeal filed by the appellant, Ankit Sharma, challenged the order dated 29.08.2022, passed by the National Faceless Appeal Centre (NFAC), Delhi. The case was filed on 2022-10-19, and the final order was pronounced on 2022-12-12. The main issue in this case was the alleged lack of adequate opportunity of being heard provided to the assessee by both the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)], as required under section 250(6) of the Income Tax Act.
During the hearing on 12.12.2022, the assessee, represented by none, contended that neither the AO nor the CIT(A) had provided adequate opportunities for presenting the case. The assessee requested the Tribunal to afford one final opportunity to explain his case before the authorities.
The Senior Departmental Representative (DR), Shri Om Prakash, admitted that the Department had no serious objections to restoring the matter to the AO for a de novo assessment, provided the assessee was given another chance to be heard.
Upon careful consideration of the rival submissions and a review of the orders passed by the AO and CIT(A), the Tribunal concluded that the assessee had indeed not been provided sufficient opportunity of being heard. The Tribunal emphasized the importance of ensuring fair hearings to uphold the principles of natural justice and to comply with section 250(6) of the Income Tax Act.
The Tribunal’s final judgment stated that the appeal filed by the assessee was allowed for statistical purposes only. The Tribunal directed the AO to frame the assessment de novo, ensuring that the assessee was given a fair opportunity to present his case.
Order pronounced in the open court on 12th December, 2022.
(C.M. GARG)
JUDICIAL MEMBER
This case highlights the critical aspect of procedural fairness in tax assessments. The Income Tax Appellate Tribunal’s decision underscores the necessity for tax authorities to provide adequate opportunities for taxpayers to be heard, ensuring that decisions are made in compliance with the principles of natural justice and the provisions of the Income Tax Act.
The appellant, Ankit Sharma, is a resident of Meerut, Uttar Pradesh, and had filed his return of income for the assessment year 2012-13. The Assessing Officer (AO) had made certain additions to the income declared by the assessee, which were contested by the assessee on the grounds that he was not given a fair opportunity to present his case.
The appellant argued that both the AO and CIT(A) had failed to provide him with sufficient opportunities to be heard, thus violating the principles of natural justice. The appellant contended that the orders passed by the AO and CIT(A) were therefore not sustainable in law.
The respondent, represented by the Senior Departmental Representative (DR), Shri Om Prakash, agreed that the CIT(A) had not adhered to the provisions of section 250(6) of the Income Tax Act, which mandates that every order passed by the CIT(A) must state the points for determination, the decision thereon, and the reasons for the decision.
The Tribunal observed that the CIT(A) had indeed failed to provide a detailed order as required under section 250(6) of the Act. The Tribunal noted that the CIT(A) had dismissed the appeal without addressing the merits of the grounds raised by the appellant, thereby denying the appellant a fair opportunity to be heard.
The Tribunal set aside the order of the CIT(A) and directed the AO to conduct a fresh assessment, giving the appellant a fair opportunity to present his case. The Tribunal emphasized the importance of following due process and ensuring that taxpayers are given a fair chance to be heard before any adverse orders are passed.
This judgment serves as an important reminder to tax authorities to adhere to the principles of natural justice and provide adequate opportunities for taxpayers to present their cases. It reinforces the requirement for tax authorities to pass reasoned orders that address all points of contention, ensuring transparency and fairness in tax proceedings.
The decision in the case of Ankit Sharma vs ITO, Ward-1(1), Meerut, reaffirms the importance of procedural fairness in tax assessments. The Tribunal’s directive to the AO to conduct a de novo assessment, ensuring that the appellant is given a fair opportunity to be heard, underscores the necessity for tax authorities to follow due process and uphold the principles of natural justice in their proceedings.
Final Tribunal Order for Ankit Sharma, Meerut vs ITO, Ward-1(1), Meerut, Assessment Year 2012-13
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