Case Number: ITA 2976/DEL/2022
Appellant: Manveer Singh, 151, Vill.-Mahmoodpur Ristal, Ghaziabad, U.P.-201003
Respondent: Income Tax Officer, Ward-1(4), Ghaziabad
Assessment Year: 2012-13
Case Filed on: 2022-12-21
Order Type: Final Tribunal Order
Date of Order: 2023-06-20
Pronounced on: 2023-06-20
PAN No.: BZBPS7379P
The present appeal was filed by the assessee, Manveer Singh, against the order of the National Faceless Appeal Centre (NFAC), Delhi dated 26.10.2022. The case revolves around the reassessment proceedings initiated by the Income Tax Officer, Ward-1(4), Ghaziabad, for the assessment year 2012-13.
The appellant raised several grounds challenging the validity of the reassessment proceedings and the subsequent addition made by the Assessing Officer (AO). The key grounds included:
The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC’ presided by Dr. B. R. R. Kumar, Accountant Member, examined the grounds of appeal and the facts presented by both the appellant and the revenue.
The Tribunal noted that the AO made the addition of Rs. 10,90,380/- based on AIR information without obtaining the bank statements. The Tribunal emphasized that the revenue authorities should have obtained the bank statements before issuing the notice u/s 148 and completing the assessment proceedings u/s 144 of the Act.
The Tribunal found that the revenue failed to bring any evidence on record regarding the alleged bank deposits. Consequently, the principles of ‘Best Judgment Assessment’ were not adhered to, and the addition made by the AO was deleted.
In conclusion, the Tribunal allowed the appeal of the assessee, Manveer Singh, and deleted the addition of Rs. 10,90,380/-. The judgment was pronounced in the open court on 20/06/2023.
Order Pronounced in the Open Court on: 20/06/2023
Signed by: Dr. B. R. R. Kumar, Accountant Member
Assistant Registrar: Subodh Kumar, Sr. PS
The order was forwarded to the appellant, respondent, CIT, CIT(Appeals), and the DR: ITAT as per the usual procedure.
The case was filed primarily due to the appellant’s contention that the reassessment proceedings initiated by the Income Tax Officer were without jurisdiction and based on insufficient grounds. The appellant argued that the reassessment proceedings lacked valid reasons and tangible evidence, making the reassessment order illegal. Additionally, the appellant challenged the addition of Rs. 10,90,380 to his income, claiming it was made without considering the actual sources of the deposits, such as withdrawals from the bank account and receipts from agricultural business.
The Tribunal, after examining the facts and arguments, concluded that the reassessment proceedings were indeed flawed, primarily due to the revenue authorities’ failure to obtain and present crucial bank statements. This lack of evidence led to the deletion of the addition made by the Assessing Officer, thus allowing the appellant’s appeal.
Manveer Singh vs. ITO, Ward-1(4), Ghaziabad – Appeal Against Reassessment for AY 2012-13
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