Facts of the Case

The assessee, Santosh Kumar Chourasia, filed an appeal against the order dated 25.02.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2009-10. During the proceedings before the authorities below, the assessee was unable to furnish the requisite supporting documents and evidences as called for. The CIT(A) proceeded to decide the appeal without the benefit of complete details furnished by the assessee.

Issues Involved

Whether the CIT(A) was justified in deciding the appeal when the assessee failed to furnish the required documents, and whether the matter deserved restoration to provide the assessee an opportunity to substantiate his claim.

Petitioner’s Arguments

The assessee submitted that he could not produce the necessary documents before the lower authorities and prayed that the matter be restored to the file of the CIT(A) for fresh adjudication so that all relevant documents could be furnished. The assessee undertook to cooperate fully in the set-aside proceedings.

Respondent’s Arguments

The Revenue contended that adequate opportunities were granted by both the Assessing Officer and the CIT(A) and that the assessee failed to comply with the requirements. It was submitted that the orders passed by the authorities below deserved to be upheld.

Court Order / Findings

The ITAT Ranchi observed that a perusal of the record showed that the assessee had not produced the required details as called for by the CIT(A). However, considering the request of the assessee and in the interest of justice, the Tribunal held that the issues deserved to be restored to the file of the CIT(A) for fresh adjudication after granting the assessee adequate opportunity of being heard. The assessee was also directed to cooperate positively in the readjudication proceedings.

Important Clarification

The Tribunal clarified that while failure to furnish documents may justify an adverse order, principles of natural justice require that a reasonable opportunity be granted where the assessee undertakes to place all relevant material on record and cooperate in the proceedings.

Final Outcome

The appeal filed by the assessee was partly allowed for statistical purposes, and the matter was restored to the file of the Commissioner of Income Tax (Appeals) for fresh adjudication in accordance with law after granting adequate opportunity of hearing to the assessee.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769080555_SANTOSHKUMARCHOURASIADHANBADVS.DY.COMMISSIONEROFINCOMETAXCIRCLE2DHANBADDHANBAD.pdf

 

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