Indrani Patnaik vs JCIT
The order of the ld CIT(A) suffers the vice of illegality as four additions have been adjudicated by the ld CIT(A) as under i. disallowance u/s.14A ii.commission expenses iii.Plot expenses iv. Penalty
Ld A.R. submitted that when four additions made by the AO during original assessment proceedings have been merged with the reassessment order u/s.147 then the grievance of the assessee regarding those four issues remains undecided and unadjudicated as the ld CIT(A) has dismissed the appeal of the assessee by taking cognizance of initiation of reassessment proceedings u/s.147 and issuance of notice u/s.148. Ld CIT DR submitted that after the order of ld CIT(A) the two additions made by the AO during reassessment proceedings have been deleted and do not survive. However, four additions made by the AO in the original assessment proceedings u/s.143(3) requires adjudication by the ld. CIT(A) to address the grievance of the assessee. Since the grounds of the assessee pertaining to the four additions made by the AO during original assessment proceedings have not been considered and adjudicated by the ld CIT(A) while passing the impugned order, therefore, in the changed circumstances, when the reassessment proceedings have been quashed by the ld CIT(A), then these grounds requires consideration and adjudication at the level of the ld CIT(A). Therefore, matter is restored to the ld CIT(A) for consideration and adjudication after allowing due and reasonable opportunity of hearing to the assessee.