This case pertains to Yamuna Builders Pvt. Ltd., assessed by ITO, Ward-27(4), New Delhi for the fiscal year 2009-10. The issue arose from a reassessment initiated by the Income Tax Department, which was later contested due to alleged discrepancies in the administrative process.
The reassessment was based on information retrieved from a hard disk during a search operation, suggesting undisclosed cash payments made by the company. However, the Income Tax Appellate Tribunal found substantial errors in the recording of this information, including inconsistencies in the amount and recipient of the alleged cash transactions.
The tribunal, led by members Shri Shamim Yahya and Shri Challa Nagendra Prasad, noted multiple irregularities in the reassessment process, such as alteration of transaction figures and recipient details without proper verification. This led to the conclusion that the reassessment was conducted on a wrongful basis, rendering it invalid under the law.
The tribunal’s decision to quash the reassessment proceedings underscores the necessity of accuracy and adherence to procedural standards in tax assessments. It highlights the repercussions for the tax authorities when deviations from legal protocols occur, ultimately protecting the taxpayer’s rights against arbitrary administrative actions.
The case of ITA 5212/DEL/2019 serves as a significant precedent in tax law, emphasizing the importance of foundational correctness in reassessment procedures and the impact of judicial oversight in upholding the principles of justice and fairness in taxation.
Reassessment Proceedings Invalidated for Yamuna Builders Pvt. Ltd.: An Analysis of ITA 5212/DEL/2019
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