6 Days Period inadequate for sending reply: ITAT sets aside assessment order passed in hasty manner

6 Days Period inadequate for sending reply: ITAT sets aside assessment order passed in hasty manner

CA Pratibha Goyal | Jun 8, 2022 |

6 Days Period inadequate for sending reply: ITAT sets aside assessment order passed in hasty manner

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.

To Read Judgment Download PDF Given Below:

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
OLD Tax Regime or New Tax Regime: Which Tax Regime to Opt; Check why Old Tax Regime is still Attractive Due Date Compliance Calendar and List of Festivals in April 2024 New NPS rule from 1st April: Check What is Changed in New NPS Rule Due Date for Mutual Fund ELSS Investment for 80C is 28th March not 31st March: Hurry Up Late MSME Payment section 43B(h) now reality: What to do in this caseView All Posts