This document reviews the appeal process in the case of ITA No. 933/DEL/2019, where Naveen Kumar, Proprietor of M/s K.S. Handloom Industries, challenges the Income Tax Officer’s reassessment for the 2011-12 assessment year.
Naveen Kumar faced a reassessment from the Income Tax Officer, Ward-3, Panipat, which resulted in significant tax additions based on deposits found in his bank accounts. The initial appeal to the CIT(A) was dismissed due to Kumar’s non-appearance, prompting further appeal to the Income Tax Appellate Tribunal.
The appellant raised multiple issues regarding the legality of the reassessment process under Section 147 to 151 of the Income Tax Act, 1961, arguing that the CIT(A) erred in law by not quashing the reassessment order. Additional disputes include the substantial tax addition of Rs.84,98,849 attributed to unexplained bank deposits.
The Tribunal noted the absence of the assessee in previous hearings due to severe personal circumstances and agreed that no prejudice would result to the revenue by granting another hearing. The case was remanded back to the CIT(A) for a fresh decision, emphasizing the necessity of observing principles of natural justice and fair assessment.
The Tribunal’s decision to remand the case back for re-examination underscores the importance of due process and the right to a fair hearing in tax reassessment cases. This decision could set a precedent for how similar cases are handled in terms of procedural fairness and taxpayer rights.
Exploring ITA No. 933/DEL/2019: The Reassessment Challenge by Naveen Kumar Against the ITO
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