ITAT Restores Case, Granting Fresh Hearing Subject to Cost Payment

The Income Tax Appellate Tribunal (ITAT) restored the case of a petitioner for a fresh hearing, as the petitioner did not get enough opportunity to present his side.

The assessee, Indermal Devilal Parmar, challenged the assessment, saying that the Assessing Officer had wrongly computed his income at Rs 20,38,940, which was Rs 8,38,941 in his original return. The second issue he raised was the addition of Rs 12 lakh under section 69A of the Income Tax Act. The petitioner also contended that the CIT(A) and the AO passed the order without giving a proper opportunity to the appellant to explain his case, violating the principles of natural justice.

The assessee said that he had sufficient reason due to which he could not present his case. The Tribunal also agreed with the assessee, saying that there was a reasonable cause due to which the assessee could not put in effective representation before the CIT(A).

The tribunal believed that the assessee should be given one more opportunity for a hearing. Therefore, the ITAT restored the matter to the CIT(A), giving one more chance to the assessee, subject to a Rs 2,000 cost, which was directed to be deposited in the Prime Minister Relief Fund.