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The Tax Publishers2020 TaxPub(DT) 1887 (Del-Trib) INCOME TAX ACT, 1961
Section 250
Where CIT(A) had not given opportunity of hearing to assessee before enhancing and as per the provision, CIT(A) had to give a proper hearing before enhancing any assessment, but he failed and had overlooked the provisions of Act. Therefore, matter was remanded back to CIT(A) for proper objection after giving hearing to the assessee.
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Appeal [CIT(A)] - Appeal order - Order passed without granting for opportunity of being heard -
The assessee's case was re-opened under section 148 and the assessing officer observed that the assessee society was not eligible for claiming exemption under section 11 or 12 as the society has been granted registration under section 12AA of the Income Tax Act, 1961 with effective from assessment year 2008-09. Therefore, the status of the society was treated as AOP by the assessing officer. The assessing officer has made addition of Rs. 5,92,369 as the assessee society had not claimed the earlier year losses in its return of income. Therefore, lifetime membership which was directly taken in balance sheet and surplus of Rs. 5,42,369 shown in income and expenditure account were to be taxed AOP. As the assessee society was not granted registration under section 12AA of the Act the assessee was not granted benefit under section 11 of the Act. The Commissioner (Appeals) had passed ex-parte order without giving any opportunity of hearing and hence the addition made by the assessing officer. Held: From the perusal of the order of CIT(A) it could be seen that CIT(A) had not given opportunity of hearing to assessee before enhancing. As per the provision, CIT(A) had to give a proper hearing before enhancing any assessment, but he failed and had overlooked the provisions of Act. Therefore, it would be appropriate to remand the matter back to CIT(A) for proper objection after giving hearing to the assessee.
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2007-08 & 2011-12
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