2023 (1) TMI 984 - AT - Income Tax
Validity of order passed by NFAC passed u/s 250 - Default u/s 201(1) - violation of principle of “audi alteram partem” for the reasons case deserves to be remanded back to the file of NFAC - HELD THAT:- As perused the material placed on records and duly considered the facts of the case in the light of settled legal position and the case laws relied upon by the appellant assessee as well the respondent revenue.
We note that, the Ld. NFAC by service of notice dt. 26/05/2022 called upon the appellant to substantiate its claim by 06/06/2022, however before the expiry of said notice period accorded to make representation, the Ld. NFAC adjudicated the matter by an order dt. 02/05/2022 i.e. well before the expiry of time period allowed to the appellant to refute its case on the basis of evidentiary documents, which evidently is violative of basic principle natural justice and for the reason concurring with DR, we find merit in the ground number 3 raised by the appellant; consequently the matter deserves to be remanded back to the file of Ld. NFAC for de-nova adjudication with a direction to observe the principle of natural justice by effectively providing reasonable opportunity to the appellant to make representation in rebuttal, ergo ordered accordingly. Appeals of the appellant assessee is allowed for statistical purposes.