This case study provides an in-depth look at the reassessment proceedings involving Neeraj Garg for the assessment year 2010-11, showcasing the complexities of the Indian tax system’s appeal mechanisms.
The appeal, ITA No. 1636/Del/2019, was brought forth by Neeraj Garg against the order passed by the Learned Commissioner of Income Tax (Appeals)-12, New Delhi. The core of the dispute revolved around the reassessment conducted by the Income Tax Officer, Ward 34(4), New Delhi, which was upheld by the CIT(A) despite concerns over the violation of natural justice principles and procedural fairness.
Neeraj Garg, represented by Sh. Ridhi Karan Aggarwal, CA, challenged the reassessment on several grounds, notably the lack of reasons supplied for initiating the proceedings and the denial of a proper opportunity to present his case. The appellant argued that the reassessment for adding Rs. 11,88,200 to his income for AY 2010-11 was conducted without sufficient notice and failed to provide an opportunity to contest the additions effectively.
During the tribunal’s hearing, the appellant’s counsel emphasized that the CIT(A) did not conduct an independent inquiry nor did it verify facts adequately, relying heavily on the assertions of the assessing officer without granting the appellant a fair chance to present supporting documents.
The tribunal, presided over by Shri H.S. Sidhu, Judicial Member, acknowledged the procedural lapses and the need for a fair hearing. It was decided that the matter would be remitted back to the CIT(A) to be decided afresh, emphasizing the necessity for the appellant to be given a proper opportunity to present his case. This decision reflects the tribunal’s commitment to ensuring that tax proceedings are conducted in a manner that respects the rights of taxpayers.
The implications of this case are significant for taxpayers who face similar reassessment challenges, highlighting the importance of procedural compliance and the role of appellate bodies in safeguarding taxpayer rights against arbitrary decisions by assessing officers.
Exploring the Reassessment Dispute between Neeraj Garg and CIT(A)-12 for AY 2010-11
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