Lalita Rani vs Income Tax Officer- Ward-1, Karnal

PER AMITABH SHUKLA, AM:

This appeal is filed by the Assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, dated 07.03.2024 arising out of assessment order dated 25.03.2022 passed under section 147 r.w.s. 144 for the Assessment Year 2013-14. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

At the outset, Ld. Counsel for the assessee submitted that as the order before the ld. AO was passed ex-parte and that the ld. First Appellate Authority also dismissed its appeal summarily and therefore the matter may be considered for remand to Ld. Assessing Officer. Ld. Counsel submitted brief factual matrix in as much as the assessee is house-wife and her case was exposed to action u/s 147 on account of purchase of immovable property for Rs.51,17,500/-. The ld. Counsel submitted that compliance could not be made before the ld. AO on account of the fact that statutory notices were not served upon the assessee. In appeal before the ld. CIT(A), the assessee argued that it had purchased two immovable properties cumulatively aggregating to Rs.75,74,050/-. Necessary evidences in support thereof were filed. It was stated that the purchase was sourced through sale of ancestral property. The ld. CIT(A) however proceeded to dismiss the appeal holding that reported facts were inconsistent.

Heard rival parties. Case file perused.

The ld. Counsel submitted that the assessee being house-wife and an illiterate lady was prevented by justified causes to present her case before the ld. Assessing Officer. It was submitted that it attempted to give the requisite details before the ld. First Appellate Authority. The Ld. Counsel tried to give requisite details to the ld. CIT(A) but he choose to reject them summarily and proceeded to dismiss the appeal, without any application of mind.

The ld. DR placed reliance upon the orders of the lower authorities.

It is undisputed facts on record that the assessee had not appeared before the Ld. AO compelling him to pass an ex-parte order. Before the Ld. First Appellate Authority, the assessee produced certain evidences and the Ld. CIT(A) proceeded to dismiss the appeal by unilaterally considering the impugned evidences. There is nothing on record to suggest that the ld. AO was given any opportunity to examine the said evidences being the first adjudicating authority. We have noted that the conclusions drawn by ld. CIT(A) are one sided. Be that as it may be, we are of the view that the matter deserves to be remitted back to the ld. AO for re-adjudication de novo. Accordingly, we set-aside the order of the lower authorities and remit the matter back to the file of the ld. AO for assessment de novo in accordance with law and by way of passing a speaking order. The Ld. AO shall give opportunities of being heard to the assessee and it shall be bounden upon the assessee to comply with the notices issued by the Ld. AO Any non-compliance on the part of the assessee can be adversely viewed. The decision to remit it back to the Ld. AO is taken in view of the fact that an Assessing Officer is the fulcrum of assessment proceedings. He possess the first right and responsibilities to examine facts of a case before arriving at his decision qua determination of taxable income in a particular case. We have noted with respectful deference the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216 on the subject matter. Accordingly, the appeal of the assessee is allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.