Case Number: ITA 1154/DEL/2020
Appellant: Income Tax Officer (ITO) Circle, Karnal
Respondent: Rajinder Kumar, Karnal
Assessment Year: 2011-12
Result: Case remanded back to CIT(A) for fresh decision
Case Filed On: 2020-06-02
Order Type: Final Tribunal Order
Date of Order: 2021-08-26
Pronounced On: 2021-08-26
This case involves the Income Tax Officer (ITO) Circle, Karnal appealing against the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], Karnal, in favor of Rajinder Kumar, for the assessment year 2011-12. The appeal was heard by the Income Tax Appellate Tribunal (ITAT) and the case was remanded back to the CIT(A) for a fresh decision after granting an opportunity to the assessee to substantiate his case.
The appellant, ITO Circle, Karnal, challenged the order of the CIT(A), Karnal, dated 24.01.2020. The dispute pertained to the assessment of Rajinder Kumar for the assessment year 2011-12. The assessee was a non-filer of income tax returns, and information was obtained that he had made cash deposits of Rs. 29,20,000 in his savings bank account during the financial year 2010-11.
The main contention in this case was the unexplained cash deposits made by the assessee, Rajinder Kumar, in his savings bank account. The Assessing Officer (AO) reopened the case, issued a notice under Section 148 of the Income Tax Act, but received no response from the assessee. Consequently, the AO made an ex-parte assessment and added the entire amount of Rs. 29,20,000 as unexplained cash deposits under Section 68 of the Act, along with bank interest of Rs. 3,908, determining the total income at Rs. 29,23,910.
The case was heard on 26.08.2021. During the proceedings, it was established that the assessee did not appear before the AO or the CIT(A) due to health issues. The CIT(A) dismissed the appeal for non-prosecution and upheld the AO’s additions.
The assessee’s counsel argued that the assessee was not keeping well and hence could not attend the hearings. He requested a fresh opportunity to present the case either before the AO or the CIT(A). The ITAT, considering the totality of the facts and in the interest of justice, decided to remand the case back to the CIT(A). The CIT(A) was directed to grant one final opportunity to the assessee to substantiate his case and decide the issue as per fact and law.
The ITAT’s decision to remand the case back to the CIT(A) underscores the importance of granting a fair opportunity to the assessee to present their case, especially in situations where non-compliance may be due to genuine reasons like health issues. The judgment reinforces the principle of natural justice and ensures that the assessee is given a fair chance to explain the source of cash deposits before any final decision is made.
This case highlights the judiciary’s role in ensuring that all parties receive a fair hearing. It also emphasizes the need for tax authorities to consider genuine reasons for non-compliance before making ex-parte assessments. The remand provides the assessee with an opportunity to present evidence and explanations that may have been missed earlier due to health issues.
In summary, the appeal by ITO Circle, Karnal against Rajinder Kumar for the assessment year 2011-12 was remanded back to the CIT(A) for a fresh decision after granting an opportunity to the assessee to substantiate his case. This decision highlights the importance of adhering to principles of natural justice in tax litigation.
ITO Circle, Karnal vs. Rajinder Kumar, Karnal – ITA 1154/DEL/2020: Assessment Year 2011-12
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform