Reassessment Proceedings: Subhash Chander Khanna vs. ITO Ward 33(4) for AY 2006-07
In a detailed tribunal order dated March 7, 2022, the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘G’, addressed the reassessment of Subhash Chander Khanna for the assessment year 2006-07. The appellant contested the reassessment related to a substantial amount credited to his proprietary concerns’ bank accounts.
The case, under ITA No. 1034/Del/2019, challenged the initial reassessment order made under section 144/147 of the Income Tax Act, which was based on unexplained cash credits amounting to Rs.4,00,74,711. The credits were noted in accounts across various banks, namely Punjab National Bank, under names like Tirupati Textiles and Shree Balajee Fabrics among others. The case was reopened under section 147 due to the lack of compliance during the original assessment proceedings and failure to file a return in response to notice under section 148.
The appeal at ITAT was driven by the appellant’s failure to attend hearings or provide adequate documentation to justify the credits. This non-compliance led to the case being dismissed ex-parte by the CIT(A), and further upheld by ITAT which directed a re-examination of the case specifics including the nature of bank deposits and subsequent business activities associated with these deposits.
This case highlights the complexities involved in dealing with reassessment proceedings and the critical nature of compliance with tax authorities’ notices. The tribunal’s decision to remand the case back for a fresh evaluation underscores the judicial process’s intent to ensure fair assessment based on thorough examination of all evidences.