Reassessment notice service and reasonable opportunity led to remand for fresh adjudication of the margin money addition.

Reassessment under section 147 was challenged on the ground that notice under section 148 had not been effectively served and that the assessee was denied a reasonable opportunity to explain the source of margin money. The appellate authority had already deleted part of the addition and sustained the balance, but the matter was found fit for reconsideration because the assessee's grievance on lack of effective service and opportunity required fresh examination. The issue was restored to the Assessing Officer for one more opportunity and a fresh decision in accordance with law.

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Issues: Whether the matter required restoration to the Assessing Officer for fresh adjudication in view of the assessee's grievance regarding non-service of notice and denial of reasonable opportunity, and the addition sustained by the Commissioner (Appeals).

Analysis: The assessment had been reopened under section 147 and notice under section 148 of the Income-tax Act, 1961 was issued, but the assessee claimed that no effective service or opportunity had been afforded. The Commissioner (Appeals) had deleted part of the addition and sustained the balance towards margin money. In view of the complaint that the assessee had not been given a proper chance to explain the source of the margin money, the matter required reconsideration by the Assessing Officer. To secure the ends of justice, the issue was restored for one more opportunity and fresh decision in accordance with law.

Conclusion: The issue was remanded to the Assessing Officer for fresh consideration after granting the assessee a further opportunity to substantiate its case.

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