2021 (12) TMI 1521 - AT - Income Tax

Revision u/s 263 - CIT passed the impugned order exparte - HELD THAT - As noticed that the assessee could not furnish the relevant documents before the CIT on the date mentioned in the notice issued u/s 263 for the reason that the assessee was Corona Positive as per the report dt. 10/03/2021 while the time allowed vide notice dt. 04/03/2021 by the Ld. Pr. CIT was 11/03/2021. We therefore set aside this case back to the file of the CIT to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee. Appeal of the assessee is allowed for statistical purposes.

Summary

The Appellate Tribunal of ITAT Chandigarh, comprising Shri N.K. Saini, VP, and Shri Sudhanshu Srivastava, JM, reviewed an appeal by the assessee against an order by the Principal Commissioner of Income Tax (Pr. CIT), Panchkula, dated 18/03/2021. The primary contention was that the Pr. CIT did not provide a "proper opportunity of hearing," violating principles of natural justice. The Pr. CIT had initiated proceedings under Section 263 of the Income Tax Act, 1961, deeming the original assessment order as "erroneous and prejudicial to the interest of the revenue."The assessee argued that due to being COVID-19 positive, evidenced by an RTPCR Test Report dated 10/03/2021, they were unable to submit the required documents by the deadline of 11/03/2021 set by the Pr. CIT. Consequently, the order was passed ex parte. The Tribunal acknowledged the circumstances and decided to remand the case back to the Pr. CIT for reassessment, emphasizing the need to provide the assessee with a "reasonable opportunity of being heard." The appeal was allowed for statistical purposes, with the order pronounced in open court on 20/12/2021.