ITAT Delhi Remands Matter to CIT(A) for Fresh Hearing Citing Natural Justice

The Income Tax Appellate Tribunal (ITAT), Delhi, has given relief to an assessee by restoring his appeal to the CIT(A) for fresh consideration, giving him a fair opportunity of being heard.

The assessee, Shri Mukul Kumar Yadav, had filed his income tax return (ITR) for AY 2012-12 reporting an income of Rs 4,31,200. The AO reopened the assessee’s case and issued notice under section 148 based on the information about the deposits made in the assessee’s bank account.

Accordingly, the AO made an addition of Rs 1,20,90,000 as unexplained loans and another of Rs 6,25,000 towards the sum received from M/s Tulip Infratech Pvt. Ltd. for the collaboration agreement. The taxpayers challenged these additions before the CIT(A), but the same was dismissed due to the assessee’s non-compliance with the notices issued to him during the appeal proceedings. Therefore, the assessee approached the ITAT.

The assessee had contended in his grounds of appeal that he had sought adjournments before the CIT(A) due to genuine reasons, but the CIT(A) dismissed his appeal without giving an opportunity of hearing as required under section 250(1) of the Income Tax Act, 1961.

During the hearing before the Tribunal, no one appeared for the assessee. After examining the facts of the case, the ITAT noted that the assessee had requested adjournments earlier and was not given a proper opportunity to present his case.

Considering the interest of justice, the ITAT restored the matter to CIT(A) for fresh adjudication. The Tribunal also directed the assessee to fully cooperate in the appellate proceedings this time.