The case ITA No. 969/Del/2020 involves The Nindana Rathee Co-Operative L/C Society Ltd., Rohtak, appealing against the decision of the CIT (Appeals), Rohtak, which pertains to the assessment year 2015-16.
The primary issue revolves around the denial of a deduction claim under Section 80P(2)(vi) and an ad-hoc disallowance of expenses by the Income Tax Officer, Ward-3, Rohtak. The Assessing Officer made an addition of Rs.13,01,072 by denying the deduction and further added Rs.2,44,634 as an ad-hoc disallowance of expenses without adequate documentation.
The appellant initially filed a ‘NIL’ income return which was later scrutinized under CASS, leading to the aforementioned additions. After the CIT (Appeals) dismissed the appeal ex-parte, the case was brought before the ITAT, which found that the appellant was not given a reasonable opportunity to be heard. Consequently, the tribunal remanded the case back to the CIT (Appeals) for a fresh decision after ensuring a fair hearing.
This case highlights the importance of procedural fairness in the assessment process and the need for thorough documentation to substantiate claims for deductions. It also emphasizes the appellate tribunal’s role in ensuring justice by mandating a re-evaluation of cases where procedural anomalies occur.
The tribunal’s decision to remand the case back for a fresh evaluation suggests a chance for the appellant to adequately present their case, potentially reversing the previous unfavorable ruling. This decision underscores the dynamic nature of tax litigation and the importance of adhering to principles of natural justice and fair play in tax proceedings.
Appeal Case Analysis: Nindana Rathee Co-Op L/C Society Ltd. vs. ITO Ward-3, Rohtak – AY 2015-16
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