2021 (2) TMI 1065 - AT - Income Tax

Reopening of assessment u/s 147 - no compliance was made by the assessee of notice under section 148 of the Act as well as subsequent notices issued under section 142(1) - notices issued by the learned CIT(A) to the assessee and sent by post were returned back with the remark that the assessee left the premises thus held it to be a valid service and dismissed the appeal of the assessee without any decision on merit - HELD THAT - CIT(A) has dismissed the appeal of the assessee due to non-representation by the assessee, without giving any reason for arriving decision on merit. In our opinion, in terms of section 250(6) of the Act, the Ld. CIT(A) is required to pass a reasoned order on merit of the issue-in-dispute despite no-representation by the assessee. In view of the facts and circumstances of the case, we set aside the finding of the learned CIT(A) and restore the matter back to the file of the Ld. CIT(A) for deciding afresh, after providing adequate opportunity of being heard to both the assessee and the Assessing Officer. Accordingly, the ground raised by the assessee are allowed for statistical purposes.

Summary

Issues:
1. Validity of reopening the case under section 148
2. Opportunity to furnish details before reassessment
3. Addition made in appellant's hands already offered by spouse
4. Availability of documents on departmental website
5. Adequate opportunity given to the assessee
6. Discrepancy in address for serving notices
7. Payment of appeal fees
8. Request to add, amend, or alter grounds of appeal

Analysis:

Issue 1: Validity of reopening the case under section 148
The appellant challenged the reopening of the case under section 148, arguing it was bad in law. The Tribunal found that the Ld. CIT(A) erred in upholding the reopening without providing a valid reason. The Tribunal set aside the decision and directed a fresh consideration, emphasizing the need for a reasoned order despite the absence of the assessee.

Issue 2: Opportunity to furnish details before reassessment
The appellant contended that no opportunity was given to furnish details before reassessment under section 147/144. The Tribunal agreed that the assessee should have been provided with a chance to present information. The failure to serve the notice for reassessment was considered a violation of natural justice, leading to the decision to set aside the order by Ld. CIT(A).

Issue 3: Addition made in appellant's hands already offered by spouse
The Tribunal noted that the addition made in the appellant's hands had already been offered for tax by the spouse in the same assessment year. The Ld. CIT(A) was criticized for upholding the addition without considering this aspect, leading to the decision to set aside the order for a fresh review.

Issue 4: Availability of documents on departmental website
The appellant argued that all requisite documents were submitted through the departmental website, contradicting the Ld. CIT(A)'s statement regarding the availability of only Form 35. The Tribunal found this discrepancy concerning and deemed the order to be passed in a casual manner, warranting it to be set aside.

Issue 5: Adequate opportunity given to the assessee
The appellant raised concerns about not receiving adequate opportunity as no notices fixing the hearing date were served. The Tribunal agreed that the appellant should have been given a fair chance to present their case, leading to the decision to set aside the order due to the lack of proper communication.

Issue 6: Discrepancy in address for serving notices
The Tribunal highlighted a discrepancy in the address mentioned by the Ld. CIT(A) for serving notices and the one provided by the assessee in Form 35. This error was considered significant, leading to the decision to set aside the order due to the casual manner in which it was passed.

Issue 7: Payment of appeal fees
The appellant argued that the appeal fees were already paid, contrary to the Ld. CIT(A)'s assertion. The Tribunal noted the discrepancy and found the order to be passed in a casual manner, warranting it to be set aside for further review.

Issue 8: Request to add, amend, or alter grounds of appeal
The appellant requested to add, amend, or alter the grounds of appeal, seeking flexibility in presenting their case. The Tribunal acknowledged this request without delving into specifics, allowing it for statistical purposes.

In conclusion, the Tribunal allowed the appeal for statistical purposes, setting aside the Ld. CIT(A)'s order on various grounds and directing a fresh consideration with proper opportunities for both the assessee and the Assessing Officer.