This article provides a comprehensive analysis of the tribunal proceedings in ITA No. 1112/DEL/2019, involving Akshay Gupta from Delhi and the Assistant Commissioner of Income Tax (ACIT), Central Circle-7, New Delhi, for the assessment year 2015-16.
The appellant, Akshay Gupta, filed his return of income for the assessment year 2015-16. The case was subsequently taken up for scrutiny, and various issues were raised by the assessing officer. Dissatisfied with the assessment order, Akshay Gupta filed an appeal with the Income Tax Appellate Tribunal (ITAT).
The case was heard by the ITAT Delhi Bench ‘A’ on 24th December 2019, with the order pronounced on the same day. The bench consisted of Ms. Sushma Chowla, Judicial Member, and Dr. B.R.R. Kumar, Accountant Member.
The appellant, represented by Kanchan Kaushal, CA, raised various grounds of appeal, challenging the additions and adjustments made by the assessing officer in the assessment order. The main contentions were related to disallowances and adjustments made under various sections of the Income Tax Act, 1961.
During the hearing, the appellant’s representative argued that the additions made by the assessing officer were not justified and that proper opportunity was not given to present the case. The respondent’s representative, Pradeep Singh Gautam, Sr. DR, defended the assessment order and argued that the additions were made based on valid grounds.
‘After hearing the rival arguments made by both the sides, we are of the considered opinion that the matter requires a detailed examination and fair opportunity should be given to the appellant to present his case.’
The tribunal agreed that the appellant should be given a fair opportunity to present his case and that the assessment order needed a detailed examination to ensure justice.
The tribunal concluded that the appeal filed by the appellant should be allowed for statistical purposes. The decision was pronounced in the open court on 24th December 2019, directing the assessing officer to reconsider the case and provide a fair hearing to the appellant.
The tribunal’s final judgment stated:
‘In the result, the appeal filed by the assessee is allowed for statistical purposes. The decision was pronounced in the open court on 24.12.2019.’
This judgment highlights the tribunal’s commitment to ensuring procedural fairness and the principles of natural justice in tax litigation.
This case serves as a precedent for similar disputes, emphasizing the importance of adhering to procedural guidelines and ensuring fair hearings in tax appeals. It underscores the role of the ITAT in safeguarding the rights of taxpayers and ensuring that appeals are decided on their merits.
The following sections provide a detailed account of the tribunal’s deliberations and the legal arguments presented by both sides during the hearing of ITA No. 1112/DEL/2019.
Akshay Gupta is a resident of Delhi who filed his return of income for the assessment year 2015-16. The appellant’s return was subjected to scrutiny, resulting in additions and adjustments by the assessing officer, which were subsequently challenged in the ITAT.
The appellant argued that the assessing officer made several disallowances and adjustments without providing adequate opportunity to explain or present evidence. The tribunal examined the procedural aspects and noted that the principles of natural justice required that the appellant be given a fair chance to present his case.
‘The ld.CIT(A) has not decided the appeal on merit. He accordingly submitted that in the interest of justice this matter should be restored to the file of the CIT(A) and the assessee should be given an opportunity of being heard.’
The tribunal emphasized the importance of ensuring that all parties receive a fair opportunity to present their case and that procedural fairness is maintained throughout the appeal process.
The tribunal’s decision in ITA No. 1112/DEL/2019 underscores the importance of procedural fairness in tax litigation. By restoring the case to the assessing officer and directing a fair hearing, the tribunal reinforced the principles of natural justice and ensured that the appeal would be decided on its merits.
This case serves as an important reference point for future tax litigation, highlighting the need for proper notice and fair hearings in tax appeals. It also underscores the role of the ITAT in ensuring that tax disputes are resolved efficiently and justly.
Order pronounced in open court on this 24th day of December, 2019.
Per Sushma Chowla, Judicial Member and Dr. B.R.R. Kumar, Accountant Member.
Tax Appeal: Akshay Gupta vs. ACIT, Central Circle-7, New Delhi – ITA No. 1112/DEL/2019
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