In the case of ITA 322/DEL/2019, Kuber Food Products India Pvt. Ltd. filed an appeal against the Assistant Commissioner of Income Tax (ACIT), Central Circle-30, New Delhi, for the assessment year 2011-12. The appeal was filed on January 17, 2019, challenging the reassessment order dated November 26, 2018, passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-30, New Delhi. The final tribunal order was pronounced on October 22, 2019.
Kuber Food Products India Pvt. Ltd., represented by CA Shri P.C. Yadav, CA Shri Manish Garg, CA Shri Rajesh Jain, and Advocate Smt Manju Bala, contested the reassessment order for the year 2011-12. The reassessment order was issued by the ACIT, Central Circle-30, New Delhi, under the provisions of section 147 of the Income Tax Act, 1961. The appellant sought relief from the Income Tax Appellate Tribunal (ITAT) by filing an appeal.
The appellant raised several grounds of appeal, including the violation of natural justice, the improper assumption of jurisdiction under section 147/148 of the Income Tax Act, and the addition of share capital and unsecured loans under section 68 of the Act without proper verification and cross-examination of the alleged entry providers.
The ITAT, consisting of Judicial Member Shri Kuldip Singh and Accountant Member Shri Prashant Maharishi, reviewed the case. The tribunal considered the arguments and evidence presented by both the appellant and the respondent, represented by Sr. DR Smt Naina Soin Kapil.
In conclusion, the ITAT ruled in favor of Kuber Food Products India Pvt. Ltd., directing the AO to delete the additions made under section 68. The appeal was partly allowed, and the tribunal emphasized the importance of adhering to principles of natural justice and proper procedure in tax assessments.
This case highlights the critical importance of ensuring fair treatment and thorough verification in tax proceedings, reinforcing the necessity for tax authorities to provide adequate opportunities for cross-examination and to base their assessments on solid, corroborated evidence.
Order pronounced in the open court on 22nd October 2019.
sd/-
(KULDIP SINGH)
JUDICIAL MEMBER
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(PRASHANT MAHARISHI)
ACCOUNTANT MEMBER
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