Case Number: ITA 1306/DEL/2021
Appellant: Nitin Kumar Garg, Ghaziabad
Respondent: ITO, Ward-2(5), Ghaziabad
Assessment Year: 2012-13
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2023-10-06
Pronounced On: 2023-10-06
The ITAT Delhi Bench dealt with an appeal filed by Nitin Kumar Garg against the order of the CIT(A)-NFAC, Delhi, related to unexplained investments during the AY 2012-13.
The Income Tax Department reopened the assessment based on AIR information indicating that the assessee purchased property worth Rs.1,01,82,000 during FY 2011-12. The IT department issued notices under Section 148 and 144 due to non-compliance, leading to an ex-parte assessment order treating part of the property investment as unexplained due to lack of substantiation of the claimed loans and savings.
The ITAT noted the discrepancies in the handling of evidence concerning loans and directed a fresh examination by the AO. The tribunal acknowledged additional evidence presented by the assessee, which included confirmation from lenders. The case was remitted back to the AO with instructions to reassess the source of funds for the property purchase, emphasizing the need for a thorough and fair evaluation.
The tribunal’s decision highlights the importance of proper evidence handling and the rights of taxpayers to substantiate their claims. This case is a critical reference for cases involving substantial property investments and the procedures for handling unexplained investments.
Order pronounced in the open court on 06/10/2023.
Judicial Member: Shri Saktijit Dey
Accountant Member: Shri Pradip Kumar Kedia
Order Dated: 06/10/2023
Nitin Kumar Garg, Ghaziabad vs. ITO, Ward-2(5), Ghaziabad: Assessment Year 2012-13
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