The Income Tax Appellate Tribunal (ITAT), Bangalore Bench consisting of George George K. (Vice President) and Laxmi Prasad Sahu (Accountant Member) has remanded the matter back to the lower authority as the reassessment notice issued on old PAN.
BACKGROUND
The assessee has not filed a return of income and therefore notice u/s. 148 was issued to the assessee on 25.3.2018 after recording reasons and obtaining approval from the competent authority which was duly served on the assessee on the email id of the assessee and physical copy was also served to the assessee on 25.3.2018.
However, there was no response from the assessee’s side. The AO issued other notices and reminder letters for which also there was no response from the assessee’s side. Before invoking section 144 of the Act, the AO also gave opportunity to the assessee, but the assessee did not respond. Therefore the AO completed the assessment by adding the amount of Rs.1,09,31,606.
On appeal, the CIT (Appeals) also issued various notices of hearing on different dates, but the assessee did not respond. Therefore, the CIT(Appeals) dismissed the appeal of the assessee for non-prosecution as unadmitted.
The assessee filed the appeal before the Tribunal. The notices issued by the CIT(A) was never served to the assessee.
The assessee submitted that the notice u/s. 148 was issued by the ITO on the Old PAN which was surrendered to the department vide assessee’s letter dated 22.6.2010.
The assessee obtained new PAN AKEPV 1591K and filed his return of income on 1.10.2011 which is placed at pages 24 to 47 of PB. Various notices issued by the CIT(A) were not served on the assessee. Therefore he requested that the matter may be sent to the AO.
On the other hand, the department relied on the orders of lower authorities and submitted that notice was duly served on the assessee in spite of which the assessee did not appear and did not object to issuance of notice u/s. 148.
RULING
The tribunal found that notice u/s. 148 was issued on the old PAN which was duly served on the assessee. The AO issued notices on different dates and opportunity was given to the assessee, but the assessee did not appear.
The AO completed the assessment u/s. 144 of the Act adding the entire amount as noted in the reasons recorded. Before the CIT(Appeals) also, the assessee did not appear and the CIT(Appeals) dismissed the appeal.
“In the interest of justice, we think it fit to remit the matter to the AO for fresh consideration. Accordingly the AO is directed to decide the issue afresh in accordance with law after giving reasonable opportunity of being heard. The assessee is given liberty to file the documents for substantiating its case and further directed not to seek unnecessary adjournment,” the tribunal stated.
Case Title: Vimalkumar Sharma V/S ITO
Citation: ITA No.410/Bang/2023