Non mentioning reasons recorded for reopening in the assessment order proved that assessment was framed in haste without providing adequate opportunity – ITAT
ABCAUS Case Law Citation:
ABCAUS 2768 (2019) (02) ITAT
The appellant assessee had sought to set aside the impugned order passed by CIT(A) confirming the penalty order passed u/s 271(1)(c) of the Income-tax Act, 1961 (the Act).
In the instant case, the assessment was framed under section 144/147 of the Income-tax Act, 1961 (‘the Act’) by issuing of the notice u/s 148 of the Act.
Further, notices u/s 142(1) were also issued and served but, on failure of the assessee to appear before the Assessing Officer (AO), he proceeded to make the addition on account of cash deposit in the saving bank account.
The CIT (Appeals) dismissed the appeal in limine on the ground that the contention of the assessee that he had not received any notice by the AO, was not sustainable because all the notices were sent to him on the same address on which order u/s 271(1)(c) was served.
Feeling aggrieved, the assessee went to the Tribunal.
The Tribunal observed that from the assessment order, it was not clear as to what were the reasons, if at all recorded by the AO, for reopening the assessment.
Further, the Tribunal observed that the assessment order had been framed u/s 147 of the Act was discernible only from the fact that the AO stated to have issued the notice u/s 148 of the Act.
The Tribunal opined that the fact that reasons recorded had not been mentioned in the assessment order nor in the order passed by the CIT (A) proved that the assessment was framed in haste without providing adequate opportunity of being heard to the assessee.
The Tribunal observed that even the CIT (A) had not provided adequate opportunity of being heard to the assessee rather relied upon unsubstantiated fact that when order u/s 271(1)(c) was received by the assessee, he could not be believed that the notice u/s 148 of the Act and notices sent u/s 142 (1) have not been received by the assessee.
In order to meet with the ends of justice, the assessment order passed by the AO and impugned order passed by the CIT (A) was set aside and the case remanded back to the AO to decide afresh after providing an opportunity of being heard to the assessee.