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TMI Blog2025 (3) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... h, the validity of the assessment was challenged before him. The aforesaid evasive approach on the part of the CIT(Appeals) needs to be deprecated.
CIT(Appeals) had failed to dispose off the appeal after considering the specific contention that was raised by the assessee qua the validity of the jurisdiction that was assumed by the AO for framing the impugned assessment vide his order passed u/s.147 r.w.s. 144 r.w.s. 144B i.e. framing of the assessment without taking cognizance of the return of income that was filed by the assessee and dispensing with the issuance of notice u/s. 143(2) of the Act, therefore, the matter is restored to his file with a specific direction to adjudicate the appeal on the said specific issue. Appeal filed by the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... gifts transactions, therefore, the A.O holding a firm conviction that the creditworthiness of the respective donors was not established, held the entire amount as the assessee's unexplained money u/s.69A of the Act. Apart from that, the A.O made an addition of the interest income of Rs. 20,636/- that was not disclosed by the assessee in her return of income. Accordingly, the A.O vide his order passed u/s.147 r.w.s. 144 r.w.s. 144B of the Act, dated 26.03.2023, after making the aforesaid additions determined the income of the assessee at Rs. 25,60,240/-. 4. Aggrieved the assessee carried the matter in appeal before the CIT(Appeals) but without success. For the sake of clarity, the observations of the CIT(Appeals) are culled out as under: "5.2 After an exhaustive review of the grounds of appeal, statement of facts and written submissions, the following observations are made: 5.3 Appellant stated that extensive evidence to substantiate the sources of income, cash deposits, and investments were submitted before the A.O and these include: Bank Statements: Detailed statements from Central Bank of India, State Bank of India, and ICICI Bank reflecting transactions. Donor Affidavit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant, I am of the considered view that the issues raised in the grounds of appeal require extensive inquiry and verification, including the additional/supporting evidence filed during the appeal proceedings and therefore in the interest of substantial justice and to ensure fair play, it is most appropriate to provide the appellant with an additional opportunity to present his case before the AO. This would enable the AO to thoroughly verify the assessee's submissions and additional/supporting evidence filed during the appeal proceedings and conduct the necessary inquiries to gather all relevant material for an accurate determination of the appellant's income. The Courts in many rulings have clearly held that the importance of providing proper notice and reasonable opportunity for response, even in situations where the assessee failed to comply with initial notices, in order to ensure principles of natural justice are followed. 6.1 Proviso to Section 251(1)(a) of the Income Tax Act w.e.f 01/10/2024 provides that in the case of appeal against an order of assessment made under section 144, the Commissioner (Appeals) is empowered to set aside the order of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income in compliance to notice u/s. 148 of the Act. The Ld. AR submitted that now when the assessee had filed his return of income in compliance to notice u/s. 148 of the Act, therefore, failure on the part of the A.O to issue notice u/s. 143(2) of the Act rendered the assessment so framed by him as invalid and nothing short of nullity. 8. On being queried as to whether or not, the aforesaid issue was taken up by the assessee before the CIT(Appeals), the Ld. AR answered in the affirmative. The Ld. AR submitted that though specifically the assessee vide his "Ground of appeal No.2" had assailed the impugned assessment framed by the A.O vide his order passed u/s.147 r.w.s. 144 r.w.s. 144B of the Act, dated 26.03.2023 claiming the same as being illegal, bad in law and void-ab-initio in absence of notice having been issued u/s. 143(2) of the Act, but the first appellate authority had though referred to the said claim of the assessee, but had not adjudicated the same. The Ld. AR to buttress his aforesaid claim had taken me through Page 41, Para 5.6 of the CIT(Appeal)'s order. 9. Per contra, Smt. Tarannum Verma, Ld. Sr. Departmental Representative (for short 'DR') relied on the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rehend as to why the CIT(Appeals) had failed to adjudicate the aforesaid material aspect, based on which, the validity of the assessment was challenged before him. The aforesaid evasive approach on the part of the CIT(Appeals) needs to be deprecated. 12. Be that as it may, I am of the view that as the CIT(Appeals) had failed to dispose off the appeal after considering the specific contention that was raised by the assessee qua the validity of the jurisdiction that was assumed by the A.O for framing the impugned assessment vide his order passed u/s.147 r.w.s. 144 r.w.s. 144B of the Act, dated 26.03.2023 i.e. framing of the assessment without taking cognizance of the return of income that was filed by the assessee and dispensing with the issuance of notice u/s. 143(2) of the Act, therefore, the matter is restored to his file with a specific direction to adjudicate the appeal on the said specific issue. Needless to say, the CIT(Appeals) shall in the course of the set-aside proceedings afford a reasonable opportunity of being heard to the assessee who shall remain at a liberty to substantiate his claim based on fresh documentary evidence, if any. 13. As the Ld. AR has confined his co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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