This detailed analysis examines the tribunal proceedings of ITA No. 1100/DEL/2019, where the appellant, Oona Singh, contested the validity of reopening and tax compliance under Sections 147/144 of the Income Tax Act, 1961, for the assessment year 2009-10.
The case centers around the validity of reopening the assessment under Section 147 of the Income Tax Act and the maintainability of the appeal based on the appellant’s compliance with filing requirements and advance tax payments. The appellant, Oona Singh, filed the return of income for AY 2009-10 on 04.12.2009, which was contested by the CIT(A) on jurisdictional grounds under Section 249(4)(b).
The original return of income was filed on 04.12.2009, declaring a NIL income. The case was reopened under Section 147, and an assessment was made under Section 144, which led to the addition of income. Oona Singh contested this addition and the reopening of the assessment, leading to the appeal.
The primary grounds of appeal included:
During the hearing, the tribunal noted discrepancies in the CIT(A)’s order, specifically regarding the claim that Oona Singh had not filed the original return of income. The appellant provided evidence of the original return filed on 04.12.2009 and the corresponding tax payments.
The tribunal found that the CIT(A) had erroneously dismissed the appeal on jurisdictional grounds, failing to consider the evidence provided by the appellant. The order noted:
‘Firstly, nowhere the AO has held that the assessee has not filed any return of income originally or in pursuance of section 148. Secondly, in the statement of facts in Form 35, the assessee has clearly submitted that it has filed a return of income. If the ld. CIT(A) has any doubt, at least he should have clarified it from the assessee by giving a specific notice of query.’
Based on this, the tribunal remanded the case back to the CIT(A) for a decision on the merits, ensuring due process and an opportunity for the appellant to present their case.
The tribunal’s decision to remand the case underscores the importance of verifying compliance and ensuring procedural fairness. This case highlights the critical need for accurate record-keeping and transparent communication between tax authorities and taxpayers.
This case serves as a precedent for future disputes involving the maintainability of appeals and the validity of reopening assessments. It reinforces the necessity for tax authorities to thoroughly review evidence and adhere to procedural requirements, ensuring taxpayers are given a fair opportunity to present their case.
The detailed analysis of ITA No. 1100/DEL/2019 exemplifies the complexities involved in tax litigation and the tribunal’s role in safeguarding procedural integrity.
The tribunal allowed the appeal for statistical purposes, directing the CIT(A) to decide on the merits after providing an adequate opportunity for the appellant to be heard. This decision underscores the tribunal’s commitment to ensuring justice and procedural fairness in tax disputes.
Order pronounced in open court on this 23rd day of December, 2021.
Per Amit Shukla, Judicial Member, and Anadee Nath Misshra, Accountant Member.
Analysis of ITA No. 1100/DEL/2019: Oona Singh vs. DCIT, Circle-2, Noida
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