The case titled ‘Navneet Bhardwaj vs JCIT’ concerns an appeal against the revisionary order issued by the Principal Commissioner of Income Tax (PCIT), Dehradun, for the assessment year 2016-17. The appeal was filed to contest the PCIT’s decision to revise the original assessment order on the grounds that it was erroneous and prejudicial to the interests of the revenue. The final tribunal order was pronounced on 25 July 2023.
Case Number: ITA 516/DEL/2021
Appellant: Navneet Bhardwaj, Muzaffarnagar
Respondent: JCIT Range-1, Muzaffarnagar
Assessment Year: 2016-17
Case Filed On: 2021-05-17
Order Type: Final Tribunal Order
Date of Order: 2023-07-25
Pronounced On: 2023-07-25
Judges: Chandra Mohan Garg, Judicial Member, and M. Balaganesh, Accountant Member
The captioned appeal was filed by the assessee, Navneet Bhardwaj, against the revisionary order dated 27.03.2021, issued by the PCIT, Dehradun, for the assessment year 2016-17. The appellant challenged the revisionary order on the grounds that the original assessment order passed by the Assessing Officer (AO) was neither erroneous nor prejudicial to the interests of the revenue.
The appellant raised several grounds challenging the revisionary order, including:
The assessee’s case was selected for limited scrutiny for the sole reason of large cash deposits in the savings bank account as per AIR. The AO issued notices under Section 142(1) along with a questionnaire to the assessee, requiring an explanation for the cash deposits of Rs. 66,87,000/-. The assessee responded by providing the necessary details and documents, explaining that the cash deposits were from fees received from students of Mount Litera School, Muzaffarnagar, which was run by Shri Ram Educational Trust, where the assessee was the settler and president.
The AO made sufficient inquiry and accepted the assessee’s explanation regarding the source of the cash deposits. The PCIT, however, invoked Section 263, stating that the AO’s order was erroneous and prejudicial to the interests of the revenue due to insufficient inquiry.
The tribunal examined the original assessment order and the proceedings conducted by the AO. It noted that the AO had issued detailed notices and questionnaires, which were duly responded to by the assessee with relevant documentary evidence. The AO had considered the explanations and documented the findings in the assessment order, which included the source of cash deposits as fees from students.
The tribunal observed that the PCIT had not provided any valid reason to allege that the assessment order was erroneous and prejudicial to the interests of the revenue. The AO had made all necessary efforts and inquiries about the source of cash deposits, and the assessee had provided sufficient evidence to support the claim. The tribunal concluded that the AO had taken a possible view based on the facts and evidence, and there was no justification for the PCIT to invoke Section 263.
The tribunal set aside the revisionary order passed by the PCIT under Section 263 and restored the original assessment order dated 19.12.2018. The appeal was allowed in favor of the assessee.
Order pronounced in the open court on 25 July 2023.
Sd/- (M.BALAGANESH) ACCOUNTANT MEMBER
Sd/- (CHANDRA MOHAN GARG) JUDICIAL MEMBER
Delhi; Dated: 25 July 2023.
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi.
Date of dictation: 15.05.2023
Date on which the typed draft is placed before the dictating member: 24.07.2023
Date on which the typed draft is placed before the other member: 24.07.2023
Date on which the approved draft comes to the Sr. PS/PS: 25.07.2023
Date on which the fair order is placed before the dictating member for pronouncement: 25.07.2023
Date on which the fair order comes back to the Sr. PS/PS: 25.07.2023
Date on which the final order is uploaded on the website of ITAT: 25.07.2023
Date on which the file goes to the Bench Clerk: 25.07.2023
Date on which the file goes to the Head Clerk: 25.07.2023
The date on which the file goes to the Assistant Registrar for signature on the order: 25.07.2023
Date of dispatch of the order: 25.07.2023.
Navneet Bhardwaj vs JCIT – ITA 516/DEL/2021: Assessment Order Challenged
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