6 Days Period inadequate for sending reply: ITAT sets aside assessment order passed in hasty manner
On perusal of the assessment order dated 31/12/2016 u/s 143(3) of Income Tax Act, Income Tax Appellate Tribunal (ITAT) Found that the notices u/s 133(6) were dated 28/11/2016. It is further noticed that the assessee was confronted with the fact of the unsatisfactory result of verification vide note sheet dated 05/12/2016.
ITAT observed that between 28/11/2016 and 05/12/2016 there were only six intervening days. This period of merely six days, was inadequate for the concerned parties to send their replies; and for the assessee to submit any explanation/reconciliation in case the inquiries did not result in satisfactory verification.
Moreover, if we consider the normal time taken in the delivery of mail by the Postal Department, then the aforesaid period of merely six days seems to be grossly insufficient.
ITAT took the view, that the assessment order was passed in a hasty manner without providing a reasonable opportunity to either the assessee or to the parties to whom notices u/s 133(6) of I.T Acts were issued. The Ld. CIT(A) erred in confirming the addition without noticing that the assessee and the concerned parties to whom notices were issued u/s 133(6) of the I.T Act did not have the adequate opportunity.
Therefore, the impugned appellate order dated 12th May 2019 of the Ld. CIT(A) was set aside and ITAT restored the dispute regarding the aforesaid amount of Rs. 37,62,393/- to the file of the AO for fresh order in accordance with law after providing a reasonable opportunity to the assessee and to all concerned.
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