2014 (3) TMI 852

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....ssued to the assessee under Sections 143 (2) and 142 (1). On 29 December 2011, the assessment was completed under Section 143 (3) on a total income of Rs.6.25 crores. The Assessing Officer had made an addition aggregating to Rs.3.38 crores in respect of certain purchases allegedly made by the assessee from Mohit Trading Company (amounting to Rs.2.10 crores) and Surana Brothers (amounting to Rs.1.28 crores). In an appeal by the assessee, the CIT (A) passed an order on 28 March 2013. The CIT (A) noted that both during the course of assessment and remand proceedings, the inquiry letters which were issued to the two parties, had been returned unserved and the assessee could not produce the said two entities before the Assessing Officer. Consequ....

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.... (Appeals). Hence, the Assessing Officer has no jurisdiction to exercise the power under Section 251 once the CIT (A) has disposed of the appeal under Section 250. Secondly, in the alternate, even if the Assessing Officer was to give effect to the order of the CIT (A) by passing a fresh order of assessment under Section 143(3), he had to comply with the principles of natural justice. In the present case, the impugned order would indicate that the Assessing Officer had, pursuant to his letter dated 21 February 2014, received a communication from the ITO, Ward-25(2), New Delhi on the basis of which the Assessing Officer passed an order on 24 February 2014 barely within three days without hearing the assessee or disclosing the contents of t....

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....or the assessment year 2009-10. Admittedly, these facts were not disclosed to the assessee nor was the assessee given any opportunity to controvert the material. The Assessing Officer has acted in haste by passing an order without notice to the assessee and in clear breach of the principles of natural justice. In this view of the matter, even if we treat the impugned order of the Assessing Officer dated 24 February 2014 as an order under Section 143 (3), it is clear that there has been a violation of the principles of natural justice and it would not be necessary to relegate the assessee to an appeal under Section 246. On the other hand, if the order is treated as an order under Section 251, which is the provision which was invoked by....