2022 (3) TMI 1280

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....ciate that the Assessment Proceedings conducted by the learned Assessing Officer and consequent order of assessment is in violation of principles of natural justice and therefore not sustainable in law on the facts and circumstances of the case. 4. The Commissioner of income Tax (Appeals) failed to appreciate that the learned Assessing Officer having failed to issue the statutory notice under section 143(2) of the act, the proceedings are not sustainable on the facts and circumstances of the case. 5. The Commissioner of Income Tax (Appeals) failed to appreciate that the learned Assessing Officer having failed to dispose the objections filed by the Appellant on the issue of non-granting of sufficient time and conducting hearing at the fag- end of the year and on the issue of non-issue of statutory/mandatory notices, the proceedings are rendered bad in law for this reason also, on the facts and circumstances of the case. 6. The Commissioner of Income Tax (Appeals) failed to appreciate that the learned Assessing Officer having failed to send the order of assessment on or before the 31/03/2016, the order is rendered invalid and unsustainable in law on the fac....

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....u/s 271(1)(c) of the Act. 5. The assessee preferred an appeal before the CIT(A) challenging the validity of the asst. order passed by the AO contending that no notice u/s 143(2) was issued and no notice of hearing was ever issued prior to the notice issued for hearing on 28/03/2016. The assessee, therefore, contended that the principal of natural justice was violated and the assessment is bad in law. The assessee also submitted before the CIT(A) that these objections were raised before the AO and that the AO did not dispose of the objections. The CIT(A) dismissed the appeal of the assessee on the ground that (i) As per the system generated Audit trail, Notice u/s. 143(2) dated 03/09/2014 was issued to the assessee fixing the date of hearing on 12/09/2014. The very fact that the AR appeared before AO proves the fact that the notice issued by the AO have reached the assessee. (ii) The AIR information on difference in rental receipts offered was brought to notice of AR the latter agreed for making addition of the same. (iii) The Assessee was in knowledge of the proceedings and agreed for the additions which were pointed out based on the reasons for select....

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....f hearing will generally be 15 days. But, in this case, the notice is dated 03/09/2014 and hearing is fixed on 12/09/2014 i.e., after 9 days of the date of notice. Therefore, it is clear that there is intervention by AO, and the date of hearing is fixed by the AO and the same is not system generated. (ii) AO in his order has clearly mentioned that the Notice u/s 143(2) dtd. 03/09/2014 was issued and served. (iii) There is proof of generation of notice in the system which is placed in Page 4 of 9, Para 4.2 of CIT(A)'s order. (iv) There are two order sheet notings dated 28/3/2016 and 30/03/2016 copy of which are attached with this submission as Annexure -I. In the noting dated 28/3/2016, AR is brought to notice of change of incumbent and he is asked to reconcile the returned income with 26AS as per the information available in AIR. In the second noting dated 30/03/2016, it is mentioned that the AR informed about non disclosure of rental income to the extent of Rs. 21,00,000/- in the Return of Income. Further, it is mentioned that the same is to be added and the AR has agreed for the same. The Id. AR has put his valid signature along with date on both th....

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....he completion of such assessment or reassessment. (ix) The Ld. AR is trying to take shelter under the proviso pleading that he has made an objection of non service of Notice u/s. 143(2) before the AO before completion of the assessment proceedings. However, his contention is not acceptable as there is no proof of making such objection before AO. (x) Although there are two submissions in the assessment folder now, which are dtd. 28/03/2016 & 30/03/2016 where assessee has raised the point of non-service of Notice u/s 143(2), but both these letters are not having acknowledgement seal/ tappal seal of the Dept. or Office of AO. Even if it is handed over personally during the proceedings there is no signature of the AO accepting the submissions. Further, there is no mention of making of any such written submissions or raising of objections in the two order-sheet notings dtd. 28/03/2016 & 30/03/2016 copy of which are placed as Annexure I. Therefore, it is clear that there is no proof of submissions of objections by the Assessee for non-service of Notice u/s 143(2) made before the AO before completion of assessment proceedings. Hence, it is to be held that assessee has no....