The appellant, Vishal Tyagi, a resident of Ghaziabad, was subjected to a search and seizure operation under Section 132 of the Income Tax Act. The assessment was framed under Section 143(3) read with Section 153A, following the discovery of undisclosed cash deposits in his bank account.
The appellant contested the additions made by the Assessing Officer (AO) amounting to Rs. 2,86,839/- for the assessment year 2012-13. The grounds of appeal included:
The case was heard by the Delhi Bench “H” of the Income Tax Appellate Tribunal (ITAT), consisting of Shri Shamim Yahya (Accountant Member) and Shri Anubhav Sharma (Judicial Member). The appellant was represented by Saraswati Legal Professionals Pvt. Ltd., while the respondent was represented by Ms. Richa Khoda, CIT-DR.
During the course of the assessment proceedings, the AO noted cash deposits in the appellant’s bank account totaling Rs. 1,13,000/- for the assessment year 2012-13. The appellant claimed these deposits were from gross receipts and previous cash balance. However, the AO added these deposits to the appellant’s income, suspecting them as unexplained.
The CIT(A) upheld the AO’s decision, leading to the appellant’s appeal to the ITAT. The ITAT observed several procedural lapses, including:
The ITAT condoned the delay in filing the appeal, noting that it was due to a genuine misunderstanding by the appellant. After reviewing the records and hearing the respondent, the ITAT decided to remit the issue back to the AO for fresh consideration. The AO was directed to provide the appellant with an effective opportunity to present his case and to consider all relevant submissions and observations.
The appeal was allowed for statistical purposes, with the ITAT emphasizing the need for adherence to principles of natural justice and proper procedural conduct. The case underscores the importance of transparent and fair assessment proceedings, ensuring taxpayers are given a fair chance to explain their financial transactions.
The order was pronounced in the open court on November 3, 2022, by Shri Shamim Yahya and Shri Anubhav Sharma.
Order signed by:
Shamim Yahya, Accountant Member
Anubhav Sharma, Judicial Member
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