Case Number: ITA 1145/DEL/2020
Appellant: ITO Ward – 4, Rohtak
Respondent: Sushil Berwal, New Delhi
Assessment Year: 2013-14
Result: Appeal dismissed
Case Filed On: 2020-05-18
Order Type: Final Tribunal Order
Date of Order: 2022-11-18
Pronounced On: 2022-11-18
This case involves the Income Tax Officer (ITO) Ward – 4, Rohtak, appealing against the order of the Commissioner of Income Tax (Appeals), Rohtak, in favor of Sushil Berwal, New Delhi, for the assessment year 2013-14. The appeal was dismissed by the tribunal.
The respondent, Sushil Berwal, filed his return of income for the assessment year 2013-14, declaring a total income of Rs. 8,13,360. The case was selected for scrutiny, and notices under Sections 143(2) and 142(1) of the Income Tax Act, 1961, were issued to the assessee. Despite various notices, there was no response from the assessee, leading the Assessing Officer (AO) to pass an ex-parte assessment order under Section 144, determining the total income at Rs. 4,32,66,870. Consequently, a penalty of Rs. 1,30,98,911 was levied under Section 271(1)(c).
The assessee appealed against the AO’s order to the CIT(A), who, after considering the submissions, the remand report of the AO, and the assessee’s reply, granted substantial relief. The CIT(A) deleted significant additions and also annulled the penalty imposed.
Aggrieved by the CIT(A)’s order, the Revenue filed an appeal before the Income Tax Appellate Tribunal (ITAT). The Revenue raised the following grounds:
The tribunal reviewed the CIT(A)’s order, the remand report, and the documentary evidence. The tribunal found that the CIT(A) had passed a reasoned order, considering the AO’s remand report and the assessee’s submissions. The tribunal noted that the CIT(A) had verified the unsecured loans through bank statements and ITRs, confirmed the additions to fixed assets with documentary evidence, and found the sundry debtors and other entries verifiable as per the audit report.
The tribunal upheld the CIT(A)’s order, finding no infirmity in the deletions made. Consequently, the tribunal dismissed the Revenue’s appeal regarding the quantum additions. Since the quantum appeal was dismissed, the penalty appeal did not survive and was also dismissed.
In conclusion, the ITAT dismissed the appeal filed by the ITO Ward – 4, Rohtak, against Sushil Berwal for the assessment year 2013-14. The CIT(A)’s order providing relief to the assessee was upheld, emphasizing the need for substantiated and verifiable evidence in tax assessment cases.
ITO Ward – 4, Rohtak vs. Sushil Berwal, New Delhi – ITA 1145/DEL/2020: Assessment Year 2013-14
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