TaxTMI 
TaxTMI 
2013 (7) TMI 918
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....y the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, as well as order dated 04.07.2004, passed by the Commissioner of Income Tax (Appeals), Bathinda, whereby additions made by the Assessing Officer, for the year 2000-01 have been deleted in their entirety, partly by the Commissioner of Income Tax (Appeals), Bathinda and partly by the Income Tax Appellate Tribunal, Amritsar. The assessee filed a return on 29.11.2000, declaring a loss of Rs. 45,740/-. The return was selected for scrutiny and notice under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as the '1961 Act") was issued on 28.11.2001. The assessee filed a revised return on 30.10.2001, declaring a total income of Rs. 2,35,900/-, alongwith a fresh....
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....the appeal filed by the assessee was allowed by holding that as discrepancies in sale of vehicles based upon a secret inquiry report prepared by the authority on the basis of a statement made by an officer of Maruti Udyog Ltd. were never furnished to the assessee and the assessee's prayer for cross-examining the said officer was wrongly declined, the addition is illegal for violation of principles of natural justice. As regards addition on account of sale of spare-parts, the Income Tax Appellate Tribunal set aside the addition in its entirety by holding that as the addition was based on an order passed by the Sales Tax Authority which was set aside by the Sales Tax Appellate Tribunal, this amount cannot be added to the income of the ass....
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....ther the revenue should be allowed to raise this question, it would be appropriate to briefly revisit the facts. The Assessing Officer added income to the return filed by the assessee under three heads namely: (a) sale of vehicles, (b) sale of spare parts, and (c) sale for service of vehicles. The Commissioner of Income Tax, Bathinda, confirmed the addition of income on account of sale of vehicles, partly set aside the addition with respect to sale of spare-parts and deleted the addition of undisclosed income for service of vehicles for absence of any discussion, logic or any material disclosed to the assessee. The Income Tax Appellate Tribunal set aside, the addition of income received from sale of vehicles by holding that there was ....
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.... the material collected by the Assessing Officer?" Counsel for the respondent submits that no such question arises and even otherwise, should not be allowed to be raised at this stage. A perusal of the impugned orders reveals that addition on account of sale of vehicles was deleted for failure to comply with principles of natural justice. An order set aside for want of adherence to principles of natural justice, would require the appellate authority, in the absence of any legal impediment, to remit the proceedings/assessments to the original forum which committed the error, in this case the Assessing Officer. Failure to adopt such a course, in our considered opinion, would lead to a travesty of justice and an error of jurisdiction tha....