BHOLA NATH YADAV,BALLIA V. INCOME TAX OFFICER, WARD - 2(4), BALLIA

ITA 4/VNS/2024

AI Insights

This case involves an appeal by Bhola Nath Yadav against the order of the learned CIT(A), which upheld an assessment order that significantly increased Yadav's assessed income for the year 2010-11. The original assessment was conducted ex-parte under Section 147 read with Section 144 of the Income Tax Act, 1961, resulting in a total income assessment of Rs. 17,30,180 as opposed to the Rs. 2,59,180 that was returned. The Tribunal found that the assessment and subsequent appellate order violated the principles of natural justice, as the assessee was not provided adequate opportunity to contest the remand report used by the CIT(A). Consequently, the Tribunal set aside the appellate order and remanded the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826229 (ITAT-VARANASI)
• Duration Of Justice: 1 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 10-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G. P. SINGH
• Keywords: Set aside; Principle of natural justice
• Section: 147

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL VARANASI CIRCUIT BENCH, VARANASI BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.04/Vns/2024 Assessment year:2010-11 Bhola Nath Yadav, Agarsanda, Ballia (UP) PAN:ACNPY 3962A Vs. Income Tax Officer,2(4), Ballia. (Appellant) (Respondent) O R D E R This appeal vide I.T.A. No.04/Vns/2024 has been filed by the assessee for assessment year 2010-11 against impugned appellate order dated 17/11/2023 (DIN & Order No. ITBA/NFAC/S/250/2023- 24/1058024104(1) of National Faceless Appeal Centre, (NFAC), Delhi. 2. In this case, assessment order dated 06.12.2017 was passed by the Assessing Officer under Section 147 r.w.s. 144 of the Income Tax Act, 1961 (in short the ‘Act’) whereby the assessee’s total income was determined at Rs.17,30,180/- as against returned income of Rs.2,59,180/-. The assessee’s appeal was dismissed by learned CIT(A) vide impugned appellate order dated 17.11.2023. Appellant by None Respondent by Shri G.P. Singh, D.R. Printed from counselvise.com 2 3. At the time of hearing, the assessee was represented by none and Revenue was represented by Shri G.P. Singh, Senior Department Representative. In the absence of any representation from the assessee’s side, learned Departmental Representative for the Revenue was heard, who relied on the impugned appellate order at learned CIT(A) and on the assessment order, but left the matter to the discretion of the Bench. On perusal of the assessment order, it is found that the assessment order was passed ex-parte qua the assessee; and that the assessment order was passed without providing adequate opportunity to the assessee. Further, on perusal the impugned appellate order of learned CIT(A), it is found that the order is based on remand report of the Assessing Officer, but there is nothing on record to show that the aforesaid remand report was shared with the assessee. There is nothing on record to show that the assessee got any opportunity to counter/rebut the contents of the aforesaid remand report of the Assessing Officer, principles of natural justice are inherent in appellate proceedings performed by learned CIT(A). It is well settled principle of natural justice that if any material is to be used against a party; the said party should get reasonable opportunity to rebut/counter the same. In the present case, when the aforesaid remand report of the Assessing Officer was used by the learned CIT(A) in passing the impugned appellate order against the assessee, without providing the appellant assessee with reasonable opportunity to rebut/counter the same; it was violative of assessee’s rights under natural justice. In view of the foregoing, the impugned appellate order of the learned CIT(A) is set aside and the issue in dispute regarding additions made in the assessment order are restored back to the file of the Assessing Officer with a direction to pass denovo assessment order in Printed from counselvise.com 3 accordance with law, after providing reasonable opportunity to the assessee. 4. In the result, the appeal of the assessee stands partly allowed for statistical purposes. (Order pronounced in the open court on 05/01/2026) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated 05/01/2026 Aks/- Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Printed from counselvise.com "