Case Number: ITA 415/DEL/2019
Appellant: Balwan Singh, Panipat
Respondent: ITO, Ward-3, Panipat
Assessment Year: 2010-11
Case Filed On: 2019-01-21
Order Type: Final Tribunal Order
Date of Order: 2023-05-04
Pronounced On: 2023-05-04
Balwan Singh, a resident of Panipat, filed an appeal against the order dated 20.11.2018 of the Learned Commissioner of Income-Tax (Appeals), Karnal, pertaining to the assessment year 2010-11. The dispute in the appeal centered around an addition made by the assessing officer, treating certain amounts as income from undisclosed sources.
The case was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal (ITAT), presided over by Sh. Kul Bharat, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member. The appellant was represented by Sh. Rahul, Chartered Accountant, while the respondent was represented by Sh. Kumar Parnav, Senior Departmental Representative (DR).
The assessing officer had noticed discrepancies in the appellant’s income tax return for the year 2010-11. Consequently, the case was reopened under Section 147 of the Income Tax Act, 1961. In response to the statutory notice, the authorized representative of the assessee attended the proceedings. The assessing officer made additions to the appellant’s taxable income, treating certain amounts as income from undisclosed sources.
The appellant challenged this decision before the Commissioner (Appeals), who dismissed the appeal, leading to the appellant filing an appeal before the ITAT.
During the hearing, the Tribunal reviewed the submissions and evidence presented by both parties. The Judicial Member, Sh. Kul Bharat, noted that the reopening of the assessment was based on the prima facie material indicating discrepancies in the income tax return, which justified the initiation of reassessment proceedings. The Commissioner (Appeals) had upheld the validity of the reopening based on the information received.
The appellant argued that the additions made by the assessing officer were not justified and provided evidence to support the claim that the amounts in question were not undisclosed income. The appellant also pointed out a typographical error in the PAN mentioned in the earlier order.
The Tribunal observed that the Commissioner (Appeals) had not provided a detailed analysis of the evidence and merely upheld the assessing officer’s order in a non-speaking manner. The Tribunal emphasized the need for a thorough examination of the appellant’s evidence and the sources of the amounts in question.
Consequently, the Tribunal decided to remand the matter back to the assessing officer for a fresh examination of the appellant’s submissions and additional evidence. The assessing officer was directed to consider the matter afresh and pass an order as per law, providing the appellant with an opportunity of being heard. Additionally, the Tribunal corrected the typographical error in the PAN of the appellant’s company, as mentioned in the earlier order.
The Tribunal allowed the appeal filed by Balwan Singh for statistical purposes, remanding the case back to the assessing officer for a fresh examination of the evidence provided by the appellant. The decision was pronounced in the open court on 4th May, 2023.
Members of the Tribunal:
Sh. Kul Bharat, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
For more information on similar cases and legal precedents, visit the official website of the Income Tax Appellate Tribunal of India.
Balwan Singh vs ITO: Dispute Over Income Tax Assessment – ITA 415/DEL/2019
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