Introduction

The Income Tax Appellate Tribunal, Delhi, in case number ITA 887/DEL/2022, adjudicated a significant appeal between Mayur Dubey (‘the Appellant’) and the Assistant Commissioner of Income Tax, Moradabad (‘the Respondent’) for the assessment year 2017-18. This article delves into the tribunal’s detailed judgment, its legal rationale, and its implications on the appellant as well as broader tax jurisprudence.

Background

The case originated from an assessment order dated 24th December 2019, whereby an addition of INR 1,52,26,500 was made to the income of the appellant, Mayur Dubey, by the Assessing Officer under section 143(3) of the Income-tax Act, 1961. Aggrieved by this order, Dubey appealed to the Commissioner of Income-tax Appeals (CIT(A)), which was decided ex parte against him due to no compliance/response to the notices issued.

Challenging the CIT(A)’s order, Dubey filed an appeal with the Income Tax Appellate Tribunal, Delhi. The appeal centers around procedural irregularities and the appellant’s inability to participate in the assessment and appellate proceedings, partly because of his judicial custody during the crucial periods of the proceedings.

Arguments and Decision

The appellant’s primary contention was his lack of awareness of the assessment and appellate proceedings due to his judicial custody, impacting his ability to respond or comply with the notices. On the other hand, the respondent, represented by the Senior Departmental Representative (SDR), argued for the maintenance of the order, citing no legal impropriety or perversity.

After considering the facts and circumstances, the tribunal observed a significant gap between the appellant’s release from custody, the assessment order, and subsequent notices, suggesting the appellant’s excuse for non-compliance was not plausible. However, given the lack of substantial material for the Commissioner to decide and to ensure a fair hearing, the tribunal remitted the case back to the CIT(A) with directions for a fresh decision after providing the appellant a reasonable opportunity to be heard.

The tribunal also emphasized the necessity for the appellant to cooperate in the proceedings and mandated his appearance before the CIT(A) with all relevant documents needed for a comprehensive review.

Conclusion

Ultimately, the tribunal allowed the appeal for statistical purposes, highlighting the importance of procedural fairness and the appellant’s responsibility in following through with the administrative processes. The case exemplifies the tribunal’s approach in balancing between strict adherence to procedural laws and ensuring justice on the merits of the case.

Implications

This ruling reinforces the critical concept of procedural justice in tax appeal cases, particularly the need for appellants to be given a fair chance to present their case. Additionally, it underscores the importance for parties in such disputes to actively participate and remain compliant with procedural guidelines to avoid unfavorable ex parte decisions.

This analysis aims to provide a comprehensive overview of ITA No. 887/Del/2022 and its implications for taxpayers and practitioners in the field of income tax law in India.

Analysis of ITA No. 887/Del/2022: Mayur Dubey vs. ACIT Moradabad for Assessment Year 2017-18