Appellant wins key issues in tax appeal, assessment orders invalid, Hundi loan not properly examined

The Tribunal found in favor of the appellant on multiple issues, including the validity of assessment orders passed without proper opportunity of being heard, completion of assessment without issuing notice under section 143(2) of the Act, and addition of an alleged Hundi loan without proper examination of seized documents. The Tribunal directed the matters back to the ld. CIT(A) for fresh consideration, emphasizing the importance of addressing the legal aspects and merits of the additions while providing the assessee with another opportunity to be heard.

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Issues involved:
1. Validity of assessment orders passed without proper opportunity of being heard.
2. Completion of assessment without issuing notice under section 143(2) of the Act.
3. Addition of alleged Hundi loan without proper examination of seized documents.
4. Failure to appreciate the possession of the alleged letter (Hundi) by the lender.
5. Failure to follow principles laid down by the High Court.
6. Alleged lack of judicial discipline in deciding the appeal.
7. Failure to discuss submissions and case laws on the issue.

Issue 1:
The appellant contended that the assessment orders were illegal as they were passed without affording a reasonable opportunity of being heard, thus violating the principles of natural justice. The Tribunal acknowledged the common grounds raised by the assessee in both appeals regarding the legality of the orders passed by the authorities below. The Tribunal directed the matter back to the ld. CIT(A) for fresh consideration on the legal aspect and merits of the additions, emphasizing that the assessee should be given another opportunity to be heard.

Issue 2:
The appellant argued that the assessment under section 143(3)/153-C/153A was completed without issuing a notice under section 143(2) of the Act, rendering the assessment erroneous and bad in law. The Tribunal noted the absence of a notice under section 143(2) and directed the matter back to the ld. CIT(A) for a fresh decision on the legal aspect and merits of the additions, granting the assessee another opportunity to present their case.

Issue 3:
The addition of an alleged Hundi loan without proper examination of seized documents was contested by the appellant. The Tribunal observed that the seized original documents were not examined, and no definite conclusion was reached before making the impugned addition. The Tribunal directed the matter back to the ld. CIT(A) for a fresh decision, emphasizing the need for a thorough examination of the seized documents.

Issue 4:
The failure to appreciate the possession of the alleged letter (Hundi) by the lender was raised as an issue by the appellant. The Tribunal noted the discrepancy in the possession of the letter and directed the matter back to the ld. CIT(A) for a fresh decision, highlighting the importance of establishing the actual possession of the lender.

Issue 5:
The appellant argued that the ld. CIT(A) failed to follow the principles laid down by the High Court, leading to a decision that was allegedly bad in law. The Tribunal directed the matter back to the ld. CIT(A) for a fresh decision, emphasizing the importance of adhering to legal principles.

Issue 6:
The alleged lack of judicial discipline in deciding the appeal was raised as an issue by the appellant. The Tribunal directed the matter back to the ld. CIT(A) for a fresh decision, stressing the importance of maintaining judicial discipline.

Issue 7:
The failure to discuss various submissions and case laws on the issue was contested by the appellant. The Tribunal directed the matter back to the ld. CIT(A) for a fresh decision, highlighting the necessity of considering all relevant submissions and case laws.

In conclusion, the Tribunal allowed both appeals for statistical purposes and directed the matters back to the ld. CIT(A) for fresh consideration, emphasizing the importance of addressing the legal aspects and merits of the additions while providing the assessee with another opportunity to be heard.

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