This article provides a comprehensive examination of ITA No. 777/DEL/2019, where Adarsh Agrawal appeals against the Order of the Ld. CIT(A)-27, New Delhi, dated 20.11.2018 for the A.Y. 2010-2011. This case highlights significant issues related to the legality of loan agreements and the procedural aspects of tax assessments.
The appeal was filed after a re-assessment was initiated based on a supposed unrecorded cash loan found in another taxpayer’s search, questioning the legality and authenticity of such findings and their use in re-assessment.
This section delves into the tribunal’s reasoning, focusing on the procedural flaws in the re-assessment process initiated by the IT Department, particularly the misuse of section 147/148 instead of section 153C for handling discoveries from other taxpayers’ searches.
The dismissal of the re-assessment by the tribunal based on procedural missteps sets a precedent for handling similar cases. This part discusses the broader implications for tax governance and the safeguarding of taxpayer rights against arbitrary assessments.
Analysis of ITA 777/DEL/2019: Adarsh Agrawal vs. ITO Ward-61(1) for AY 2010-11
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