Unexplained Investment Appeal: ITA No. 6427/Del/2019 Tulsi Das vs. ITO Ward-3(5), Noida for AY 2009-10

Introduction

In the Income Tax Appellate Tribunal, Delhi Bench ‘SMC’, presided by Shri Saktijit Dey, Judicial Member, the case ITA No. 6427/Del/2019 along with ITA No. 6428/Del/2019 for Assessment Year 2009-10 was pronounced on July 29, 2022, involving the appellant Tulsi Das of Noida against the ITO Ward-3(5), Noida.

Background

This case emerges from two separate orders by the Commissioner of Income-Tax (Appeals)-1, Noida, addressing quantum proceedings and penalty proceedings under Section 271(1)(c) of the Income-tax Act, 1961. Originating from AIR information, it was noted that Tulsi Das had purchased immovable property worth Rs.46,20,000, leading to a reopening of assessment under Section 147. The assessing officer added this amount as unexplained investment under Section 69 after alleged non-compliance by the assessee.

Appeal Proceedings

The initial appeal was dismissed in limine by the Commissioner (Appeals) due to alleged non-compliance with section 249(4)(b). However, upon review, it was noted that the assessee had indeed filed his income return, which was previously accepted after scrutiny. Thus, the dismissal was based on a misinterpretation of facts.

Judicial Decision

Shri Saktijit Dey ordered the restoration of the matter to the file of the Commissioner (Appeals) to decide on the merits after providing a reasonable opportunity of being heard to the assessee. This decision highlighted the need for accuracy in the handling of appeals and underscored the importance of procedural fairness.

Implications of the Order

The tribunal’s decision to restore the appeal for a fresh adjudication on the merits reflects a significant shift towards ensuring justice and adherence to procedural standards in tax assessments and penalties.

Conclusion

The case of Tulsi Das vs. ITO presents a crucial precedent for handling appeals with procedural discrepancies. It emphasizes the tribunal’s commitment to justice and the importance of giving a fair hearing, setting a benchmark for future cases.

Order Details

Order pronounced in the open court on 29th July 2022 by Shri Saktijit Dey, marking a significant moment in judicial tax proceedings.

Unexplained Investment Appeal: ITA No. 6427/Del/2019 Tulsi Das vs. ITO Ward-3(5), Noida for AY 2009-10