2010 (7) TMI 1105 - AT - Income Tax

Summary

Issues involved: Challenge to assessment order and opportunity provided to the assessee.

Summary:
The appeal was against the order passed by the CIT(A) for the assessment year related to the block period from 1.4.1996 to 26.3.2003. The assessee, a Civil Contractor, had a search and seizure action under section 132 of the Income Tax Act, 1961. The AO completed the assessment of undisclosed income at Rs. 32,49,40,050/-, creating a demand of Rs. 25,38,43,170/-. The CIT(A) confirmed the order of the AO on all issues, dismissing the appeal filed by the assessee. The assessee challenged the assessment order and the opportunity provided.

Challenge to Opportunity Provided:
The assessee challenged that no proper and due opportunity was provided. The AO completed the assessment within 16 days without allowing adequate time and opportunity to the assessee. The CIT(A) confirmed the additions without the assessee's appearance. The ITAT found that the AO did not provide a reasonable opportunity to the assessee and set aside the orders passed by the revenue authorities. The matter was sent back to the AO to decide afresh after providing sufficient opportunity of being heard to the assessee.

Result:
The ITAT partly allowed the assessee's appeal for statistical purposes. The order was pronounced in the open court on the 9th day of July, 2010.