2013 (10) TMI 1513 - AT - Income Tax

Summary

Issues involved: Appeal against orders of ld CIT(A) u/s 153A(b) of the Income tax Act, 1961 for assessment years 2002-03 to 2006-07.

Summary:
1. The appeals were filed by the assessee against separate orders of ld CIT(A) for assessment years 2002-03 to 2006-07 u/s 153A(b) of the Income tax Act, 1961.

2. Common grounds were taken by the assessee in all appeals. The grounds included challenges related to the assessment order service, violation of natural justice principles, addition of undisclosed income, unexplained payments, and investments.

3. The short facts of the case involved a search and seizure action conducted at the assessee's premises. The Assessing Officer issued a notice under section 153A of the Income tax Act, 1961, after a significant delay following the search. The AO's actions were challenged by the assessee regarding the issuance of notices and lack of reasonable opportunity to produce evidence.

4. The ld CIT(A) dismissed the appeal of the assessee, upholding the actions of the AO. However, the appeals were decided ex parte as the assessee did not appear for the hearing.

5. The Tribunal found that the AO and ld CIT(A) did not follow principles of natural justice in passing the orders. Citing the importance of affording a reasonable opportunity of being heard, the Tribunal reversed the orders of ld CIT(A) and directed the AO to decide the grounds afresh after giving the assessee a fair opportunity.

6. Consequently, all issues raised in the appeals were restored to the file of the AO for fresh assessment. The AO was instructed to conduct denovo assessment as per the law.

7. The appeals filed by the assessee were allowed for statistical purposes. The decision was pronounced in open court on 10th October 2013.