This article reviews the Income Tax Appellate Tribunal’s decision in the case of Ankit Lohia vs. ITO, Ward-1(5), Noida, for the assessment year 2009-10, covered under ITA No.1398/Del/2020 and ITA No.6337/Del/2019.
Ankit Lohia, legally heir to Late Shri Inderjeet, challenged the Income Tax Officer’s reassessment and penalty orders relating to undisclosed agricultural income and procedural flaws in notice delivery under ITA Nos. 1398 and 6337 respectively.
The reassessment for AY 2009-10 was initiated without proper notice under sections 147 and 148 of the Income Tax Act, which the appellant contested for lack of jurisdiction and procedural validity. The CIT(A)’s orders in both cases were appealed due to lack of proper hearings and inadequate assessment of substantive issues.
The primary issues included the jurisdiction of the IT Officer to reopen the assessment, the procedural legitimacy of the notices served, and the appropriateness of the penalties levied for alleged undisclosed income. The Tribunal recognized procedural lapses and the need for a comprehensive reassessment, leading to a remand to the CIT(A) for a fresh review.
The decision underscores the importance of strict adherence to procedural requirements in tax assessments and reaffirms the taxpayer’s rights to a fair hearing. It also highlights the Tribunal’s role in ensuring that assessments and penalties are not imposed without adequate justification and adherence to legal standards.
The case of Ankit Lohia vs. ITO represents a significant precedent in safeguarding taxpayer rights against procedural oversights by tax authorities. The outcomes from the remanded proceedings will be crucial for setting further precedents in related tax litigation.
Detailed Analysis of ITA 1398/DEL/2020: Ankit Lohia’s Case Against ITO
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