Appeal for Quantum Addition and Penalty: Devanshi Amit Gupta vs ACIT CC-18, New Delhi for AY 2006-07

Detailed Overview of ITAT Case: Devanshi Amit Gupta vs ACIT CC-18, New Delhi

This case, ITA No.6743/Del/2019, concerns the appeal by Devanshi Amit Gupta against the Commissioner of Income Tax (Appeals)-27, New Delhi’s decision for the assessment year 2006-07. The case was adjudicated by the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal, presided over by Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Anadee Nath Misshra.

The crux of the appeal was the challenge against the order dated 10/06/2019 concerning a quantum addition of Rs.12,12,500 and a subsequent penalty of Rs.7,59,702 imposed under section 271(1)(c) of the Income Tax Act. The tribunal reviewed the appeal against both the quantum addition and the penalty, considering the principles of natural justice and the legal precedents related to such assessments and penalties.

During the tribunal proceedings, it was noted that a previous ITAT order had restored the quantum addition issue back to the CIT(A), requiring a re-assessment. In light of this, the tribunal decided to set aside the impugned appellate order related to the penalty and restored the matter to the CIT(A) for a de novo determination. This decision allows for a reevaluation of the penalty in correlation with the outcome of the quantum addition’s reassessment.

The tribunal’s approach in this case highlights the importance of adhering to the principles of natural justice, providing the appellant a fair hearing, and ensuring that all legal precedents and procedural standards are met. The case underscores the procedural intricacies involved in handling appeals related to tax assessments and penalties.

Order pronounced in the open court on January 24, 2023, marks a significant step in ensuring that tax appeal processes are conducted fairly and judiciously, reflecting the tribunal’s commitment to justice and proper legal procedure.

Appeal for Quantum Addition and Penalty: Devanshi Amit Gupta vs ACIT CC-18, New Delhi for AY 2006-07