Kusum Srivastava vs ITO

Sushma Chowla, J

The appeal in the present case arises from the order of CIT(A)-12, New Delhi, dated 06.06.2019 relating to assessment year 2011-12 against the order passed under section 147/144 of the Income-tax Act, 1961 (in short 'the Act').

The stay application has been moved by the assessee against the aforesaid order in the instant AY.

While arguing the stay application, the Ld.AR for the assessee stated that there is no merit in the assessment framed in the case of the assessee as the income which has been assessed in the hands of the assessee infact belongs to her husband Sh. Naresh Srivastava. He further pointed out that the assessee is poor and old age lady and has no source of income. It is also brought to our attention that the assessment in the case of the assessee was completed u/s 147/144 of the Act. He stressed that no proper opportunity was allowed by the AO before completing the assessment in the case of the assessee.

The Ld.DR for the Revenue placed reliance on the orders of the authorities below.

We have heard rival contentions and perused the record. The perusal of the record reflects that the assessment in the case was initiated after recording the reasons for re-opening the assessment and issuing notice u/s 148 of the Act. The AO though issued notices u/s 142(1) of the Act but there was non compliance on behalf of the assessee. Hence, the assessment was completed u/s 147/144 of the Act, on the basis of information available on record. The assessee is aggrieved by the said order passed by the AO. We are of the view that principles of natural justice are violated in the case as the assessment has been completed without affording reasonable opportunity of hearing to the assessee. Accordingly, we deem it fit to restore the matter back to the AO who shall afford reasonable opportunity of hearing to the assessee and complete the assessment in accordance with law. The assessee is also directed to put in appearance before the AO and participate in the assessment proceedings. Consequently, the appeal filed by the assessee is allowed. The stay application filed by the assessee in these circumstances is thus, dismissed.

In the result, the appeal of assessee is allowed and stay application filed by the assessee is dismissed.