INCOME TAX ACT, 1961

Section 264

Revision under section 264 - Other orders - Reasons for non-appearance before AO -

AO issued notices calling upon assessee to file the return and proposed to take into scrutiny her transactions. AO held that assessee had purchased two immovable properties and the source of which was not disclosed. Assessee filed Revision Petition before CIT in which she first sought to explain the reasons for non-appearance before AO. She pointed out that earlier notices were issued at her address which she had changed nearly three years earlier to the knowledge of Department. She further pointed out that her financial and tax matters had been looked after by her husband who had recently gone through medical surgery and could not attend the office of AO. CIT heard Revision Petition only on the ground that the assessee was granted more than sufficient opportunities, despite which she failed to appear before AO in response to several notices. He did not examine assessee's contentions on merits Held: It was true that assessee not having participated before AO, necessary material in support of her contentions, could not be verified. Nevertheless, it would not be difficult for CIT to do so while re-examining her Revision Petition. He could either call for a remand report and decide this issue himself or remand the proceedings before AO for fresh assessment. Assessee's representation that she had never purchased two properties as suggested by AO needed further examination. Order passed by CIT was set aside and he was accordingly directed to examine the Revision Petition on merits.

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :

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