Pre-dated demand notice even before assessment order was passed showed denial of natural justice

Pre-dating demand notice even before the assessment order was passed showed the assessee was denied any opportunity of hearing in violation of natural justice – ITAT

ABCAUS Case Law Citation:
ABCAUS 2799 (2019) (02) ITAT

In the instant case, the assessee had filed the appeal against the order passed by the Commissioner of Income Tax (Appeals) in confirming the addition made for unexplained loans.

The assessee raised a legal ground that the notice of demand was pre-dated even before the assessment order was passed.

It was pointed out that the notice of demand issued by the Assessing Officer borne the date as 28.12.2012 whereas the assessment order was dated 31.12 .2012.

It was also submitted that the AO had sent the last notice dated 26.12.2012 fixing the date of hearing on 31.12.2012 suggesting that even before the date of hearing itself, the demand notice was prepared to give effect to the demand notice, the impugned order of assessment was passed without allowing any opportunity of hearing.

Thus, it was the case of the assessee that the impugned order was being passed in violation to the principles of natural justice and therefore the same was bad in law.

The Tribunal observed that the demand notice itself was issued on 28.12.2012, the hearing fixed on 31.12 .2012 became farce.

The Tribunal expressed agreement with the submission that proper opportunity of hearing was not allowed to the assessee and the impugned order was passed in violation o f principles of natural justice.

Accordingly, the ITAT set aside the assessment order and allowed appeal of the assessee.

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