M/S Nrvs Steels Ltd., Basna, Mahasamund vs Deputy Commissioner Of Income Tax, ... on 1 June, 2023
23. After giving a thoughtful consideration to the aforesaid facts,
circumstances and the information emerged on the basis of documentary
evidence along with verbal averments by the revenue authorities, we find that
there were certain proceedings ongoing in the case of assessee, after the
draft of assessment was submitted to the Ld. JCIT on 28.12.2019. A
communication from the valuer M/s FCPL was received on 28.12.2019.
Though, there was no documentary evidence to substantiate that such report
of valuer was duly furnished before the Ld. JCIT and the draft assessment
was approved after considering the same, at this juncture, a question
emerges qua the objections of the assessee which were responded by the
valuer, why the same are not confronted to the assessee for its comments
before culmination of the assessment. Another question arises that, if the
report was furnished before the Ld. JCIT, who was the authority granting the
approval u/s 153D, bearing a presumption that proper opportunity of hearing
has been afforded to the assessee, whereas apparently, when there was no
response of assessee on the report of valuer on record placed before the
sanctioning authority, for the reason that the assessee was not even aware
about the receipt of such communication from the valuer, how the sanctioning
authority convinced himself that the required / reasonable / proper opportunity
of hearing was granted to the assessee. Such observations led to a situation,
wherein it can be plainly construed that either the complete set of records are
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ITA No. 05/RPR/2021(Assessee) & 08/RPR/2021(Department)
M/s NRVS Steels Limited vs Deputy Commissioner of Income Tax (Central)-2, Raipur
not placed before the sanctioning authority or are not perused by the
sanctioning authority or the failure in compliance of the mandatary
proceedings could not be envisaged by the authority while granting the
sanction u/s 153D. Such facts and circumstances, establishes that there was
a violation of principle of natural justice on the part of Ld. AO, as the report of
valuer M/s FCPL was not communicated to the assessee for its comments,
and furthermore such mistake / lapse could not be perceived / comprehended
or slipped the attention of the sanctioning authority, is nothing short of non-
application of mind or approval in routine manner.