Lack of Prejudice to Revenue and Non-compliance by Assessee, ITAT Remands Case for De Novo Assessment u/s 144 & 147

The Income Tax Appellate Tribunal (ITAT) remanded a case for de novo assessment under Sections 144 and 147 due to non-compliance by the assessee and lack of prejudice to revenue. The tribunal observed procedural deficiencies in the assessment process, including the failure to provide the assessee an opportunity to counter allegations. It held that a fair opportunity is essential for justice and directed a fresh assessment to address the procedural lapses. The decision highlights the ITAT’s commitment to ensuring procedural fairness in income tax cases. It also underscores the importance of adhering to due process in tax assessments to prevent unnecessary litigation. The tribunal’s ruling serves as a reminder to both taxpayers and authorities to follow prescribed procedures meticulously. This judgment reinforces the need for balanced enforcement of tax laws to protect the interests of both parties.