The present appeal was filed by the assessee, M/s Aabdeen Travel Services, for the Assessment Year 2017-18, challenging the appellate order dated 18.10.2023 passed by the Commissioner of Income Tax (Appeals). The assessee is a partnership firm engaged in the business of tours and travel services.

For the relevant assessment year, the assessee filed its return of income on 01.11.2017 declaring a total income of ₹1,36,861. The return was subsequently selected for scrutiny, and the Assessing Officer completed the assessment under section 143(3) of the Income-tax Act on 23.12.2019. During the course of assessment proceedings, the Assessing Officer made an addition of ₹78,52,000 under section 68 of the Act, thereby determining the total assessed income at ₹79,88,860.

Aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT(A). However, the said appeal was dismissed. The assessee thereafter approached the Income Tax Appellate Tribunal.

During the course of hearing before the Tribunal, the learned counsel for the assessee contended that the order passed by the CIT(A) suffered from serious procedural infirmities. It was submitted that the impugned appellate order had been passed without affording reasonable opportunity of being heard to the assessee and that the order failed to deal with the issues on merits, thereby not qualifying as a speaking order. The learned counsel prayed that the matter be restored to the file of the CIT(A) for fresh adjudication in accordance with law.

The learned Departmental Representative did not raise any objection and left the matter to the discretion of the Bench.

After considering the submissions, the Tribunal observed that the principles of natural justice require that adequate opportunity of hearing be granted and that appellate authorities must pass reasoned and speaking orders. Accordingly, the Tribunal set aside the impugned order of the CIT(A) and restored the matter back to his file with a direction to pass a de novo order after providing reasonable opportunity to the assessee and in accordance with law.

As a result, the appeal filed by the assessee was partly allowed for statistical purposes.

 

Source link:
https://itat.gov.in/public/files/upload/1767608171-YsHzBr-1-TO.pdf