Tribunal sets aside CIT(A) orders for AYs 2006-07 onward due to natural justice violation The Tribunal allowed the Revenue's appeals, setting aside the CIT(A) orders for A.Yr. 2006-07 and subsequent years due to the violation of natural justice ...
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Tribunal sets aside CIT(A) orders for AYs 2006-07 onward due to natural justice violation
The Tribunal allowed the Revenue's appeals, setting aside the CIT(A) orders for A.Yr. 2006-07 and subsequent years due to the violation of natural justice principles by not serving notice to the Assessing Officer in Form NO.ITNS-51. The Tribunal directed the CIT(A) to re-decide the appeals for A.Yrs. 2004-05, 2005-06, 2007-08, and 2008-09 after providing the AO with a proper opportunity to be heard. All appeals were allowed for statistical purposes, with instructions to re-decide in compliance with the law and principles of natural justice.
Issues: Appeal against CIT(A) orders allowing deduction u/s 80IA & penalty for late safety arrangement; Additional ground of violation of natural justice by not sending notice to AO in Form NO.ITNS-51 by CIT(A).
Analysis: 1. The Revenue filed appeals against CIT(A) orders allowing deduction u/s 80IA & penalty for late safety arrangement. The Revenue raised a common ground in each year against CIT(A) directions for deduction u/s 80IA. An additional ground was raised in A.Yr. 2006-07 regarding the violation of natural justice by not sending notice in Form NO.ITNS-51 to the Assessing Officer (AO).
2. The Revenue contended that the failure to serve notice to the AO violated principles of natural justice, citing the decision in NTPC vs CIT. The Senior Advocate for the assessee objected to the admission of the additional ground.
3. The Tribunal admitted the additional ground, stating that legal grounds can be raised at any time. The Tribunal decided to first address the legal ground raised in A.Yr. 2006-07. The Revenue argued that the CIT(A) allowed deduction u/s 80IA for the first time in A.Yr. 2006-07 without serving notice to the AO.
4. The AR for the assessee argued that there was no affidavit proving non-service of Form NO.ITNS-51 to the AO. The Tribunal examined the original file of the CIT(A) and noticed discrepancies in the service of notices to the AO for A.Yr. 2006-07.
5. The Tribunal observed that for A.Yrs. 2004-05, 2005-06, and 2008-09, notices were served to the AO along with Form NO.ITNS-51, but for A.Yr. 2006-07, there was no mention or service of the notice to the AO. The Tribunal dismissed the Senior Counsel's plea and held that the CIT(A) violated natural justice principles.
6. The Tribunal set aside the CIT(A) order for A.Yr. 2006-07 and subsequent years, directing the CIT(A) to re-decide the appeals after giving the AO proper opportunity to be heard. Consequently, the orders for A.Yrs. 2004-05, 2005-06, 2007-08, and 2008-09 were also set aside for fresh consideration.
7. Ultimately, all appeals filed by the Revenue were allowed for statistical purposes, with the direction to re-decide the appeals in accordance with the law and principles of natural justice.
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