2018 (6) TMI 1713 - AT - Income Tax

Reopening of assessment u/s 147 - unexplained investments addition u/s 69 - CIT(A) held that the Assessing Officer validly completed the assessment under section 143(3) r.w.s. 147 - Assessee submitted during the course of hearing of this appeal, the addition made in the reassessment may be deleted and justice be rendered - HELD THAT - We direct the CIT(A) to adjudicate the issue on merits with regard to the addition made under section 69 of the Act in accordance with law by allowing an opportunity of being heard to the assessee. Appeal filed by the assessee is allowed for statistical purposes.

Summary

Issues:
1. Challenge against the reopening of assessment under section 147 of the Income Tax Act, 1961.
2. Dispute regarding the adjudication of the appeal on merits by the ld. CIT(A).

Analysis:
1. The appeal was filed against the order of the ld. Commissioner of Income Tax (Appeals) 13, Chennai, concerning the assessment year 2011-12. The assessee, a partner of a firm, filed the return admitting total income. The assessment was completed under section 143(3) of the Act, and later, the income was reassessed under section 147, making additions for unexplained investments under section 69 of the Act. The ld. CIT(A) upheld the assessment order passed under section 143(3) r.w.s. 147 of the Act.

2. The assessee contended that the ld. CIT(A) did not adjudicate the issue on merits regarding the addition made under section 69 of the Act during the assessment. The Tribunal noted that the ld. CIT(A) confirmed the addition without considering the grounds raised by the assessee in the appeal. The Tribunal directed the ld. CIT(A) to adjudicate the issue on merits in accordance with the law by granting an opportunity of being heard to the assessee.

3. The Tribunal observed that the ld. CIT(A) did not properly address the grounds raised by the assessee in the appeal, leading to the direction for a proper adjudication of the issue. The decision highlighted the importance of considering all relevant grounds raised by the appellant and providing a fair opportunity for the assessee to present their case. Ultimately, the appeal was allowed for statistical purposes, emphasizing the need for a thorough examination of all aspects of the case before making a final decision.

In conclusion, the judgment focused on the procedural fairness and the obligation of the appellate authority to address all grounds raised by the appellant. The Tribunal's direction for a proper adjudication of the issue on merits underscored the significance of due process and the right of the assessee to be heard in tax matters.