The case ITA No.1680/DEL/2021 involves the Deputy Commissioner of Income Tax, International Taxation Circle-2(2)(2), New Delhi, as the appellant and Mr. Hotchand Teckchand Punjabi as the respondent. The contention revolves around the alleged over-reporting of time deposits worth Rs.7,18,47,782 for the assessment year 2012-13.
The Revenue’s appeal stems from an order by the Commissioner of Income Tax (Appeals)-43, New Delhi, dated August 17, 2021, which pertained to the assessment year 2012-13. The core issue in the appeal was the CIT(A)’s decision to delete adjustments made by the Assessing Officer regarding the value of time deposits.
The primary grounds raised by the Revenue questioned the CIT(A)’s handling of additional evidence without proper procedural adherence, specifically the absence of a third-party verification and a remand report from the assessing officer, suggesting a potential violation of procedural tax rules.
The tribunal, led by Shri Saktijit Dey, Judicial Member, and Shri G.S. Pannu, Hon’ble President, analyzed the submissions. They reviewed the administrative process and noted that the CIT(A) had the authority to accept additional evidence under the given circumstances where the appellant might not have had a fair opportunity to present his case initially due to COVID-19 restrictions.
After reviewing the evidence, which included bank statements and fixed deposit receipts, the tribunal found that the actual fixed deposit amount was significantly lower than reported by the department’s system. The CIT(A) had also verified the source of these deposits, which were confirmed to be from the respondent’s overseas earnings.
The tribunal upheld the CIT(A)’s decision, emphasizing the correctness of the appellate decision to delete the addition of over-reported deposits. It highlighted the importance of ensuring that taxpayers have the opportunity to present relevant evidence, especially in cases where procedural anomalies occur.
The decision reaffirmed the judiciary’s role in overseeing fair assessment practices and underscored the significance of adherence to procedural norms in tax assessments.
Order pronounced in the open court on February 17, 2023.
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