TMI Blog2017 (10) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... refund or otherwise increasing the liability of the assessee shall not be made unless the authority concerned gives notice to the assessee of its intention to do so. Therefore, it is obligatory under the statute to issue notice by the Assessing Officer to give a reasonable opportunity of being heard to the Assessee. This is clearly set out u/s 154 of the Income Tax Act and it has to be followed by the tax authorities at the initial stages. If this procedure is not followed of issuing the notice and giving reasonable opportunity of being heard, further exercise will be non est. Therefore, the assessment order itself becomes void ab initio. The order u/s 154/254 of the Act is set aside. In all the Assessment Years the issue is identical; hen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) That the Ld. A.O. has erred in law in increasing /charging interest u/s 139(8)217, 234A 234B. (c) That the appellant craves the indulgence of the Hon ble Tribunal : allow the appellant to take up such other /amended / alternate c additional ground of appeal at the time of hearing for which the permission may be sought at the time of hearing. The grounds of appeal in all the Assessment Years are common therefore, we are taking up the facts of the lead case for Assessment Year 1979-80 (ITA No. 382/2015). 3. The order u/s 254/143(3) of the Income Tax Act, 1961 was passed on 30/12/2010 and addition of ₹ 16,02,84,689/- was made. The Assessing Officer observed that the calculation of interest charged u/s 220(2) of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest charged under these Sections, though the overall demand against the assessee got reduced because of wrong charging of interest u/s 220 (2) of the Act. The CIT(A) also observed that the Assessing Officer s order is silent about any opportunity of being heard given to the assessee in respect of enhancement in the interest amounts u/s 139 (8) and Section 217 of the Act. The CIT(A) vide letter dated 14/10/2014 admitted that the Assessing Officer has not given any opportunity to the assessee and therefore, without prejudice to the same, the CIT(A) gave specific opportunity to submit assessee s objection in respect of Assessing Officer s computation of interest u/s 139(8) Section 217 of the Act. 6. The Ld. AR submitted that the CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of M/s Deepak Agro Food Vs. State of Rajasthan and Ors. (Civil Appeal Nos. 4327-28/2008 order dated 11th July 2008) wherein it is held that the irregularities committed by the Assessing Officer, during the course of assessment proceedings will not make assessment orders null and void. 8. We have heard both the parties and perused the material available on record. The principle of natural justice was not followed by the Assessing Officer while rectifying the original assessment order and the said fact was admitted by the CIT(A). It is not proper to improve the Assessing Officer s defect by the CIT(A) which is not permissible under the Income-Tax statute wherein the notice has to be given to the assessee when there is an increase i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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