Remand for de novo adjudication follows failure to give the assessee an effective opportunity to substantiate the claim.

Where material filed by the assessee was not effectively considered and no effective opportunity was given to substantiate the claim, the assessment and first appellate orders were set aside. The ITAT restored the matter to the first appellate authority for de novo adjudication on merits, allowing the assessee an opportunity to plead and prove the case. The dispute was not finally decided on the existing record, and the appeals were treated as allowed for statistical purposes.

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Issues: Whether the assessment and first appellate orders should be set aside and the matter restored for fresh adjudication because the assessee was given no effective opportunity to substantiate the claim and the material filed was not considered.

Analysis: The appeals involved additions made in assessment and sustained in first appeal. The assessee sought another opportunity to place reliance on the documents already filed and to substantiate the claim before the appellate authority. In the circumstances, the matter warranted restoration for reconsideration on merits rather than final disposal on the existing record.

Conclusion: The impugned orders were set aside and the matter was restored to the first appellate authority for de novo adjudication on merits, with an opportunity to the assessee to plead and prove the case.

Final Conclusion: The assessee obtained remand relief and the appeals were treated as allowed for statistical purposes.

Ratio Decidendi: Where material filed by the assessee has not been effectively considered and a further opportunity is necessary to decide the dispute on merits, restoration for de novo adjudication is warranted.

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