Income Tax Appeal Analysis: Case ITA 1348/DEL/2022 – ACIT Central Circle-II, Noida vs. Rishi Agarwal

Introduction

The case under review, ITA No. 1348/DEL/2022, presents an intriguing scenario within the Indian tax litigation landscape, where the appellant, ACIT Central Circle-II, Noida, challenges the order passed by the learned Commissioner of Income-tax (Appeals)-4, Kanpur. This dispute revolves around the assessment year 2012-13, with the appellant contesting the order in favor of the respondent, Rishi Agarwal, a resident of Noida.

Background of the Case

The core of the dispute arises from proceedings initiated under section 147 of the Income-tax Act, 1961, due to reasons recorded that led to the issuance of a notice under section 148 of the Act. The respondent, upon receiving the notice, filed objections to the reopening of the assessment proceedings, which were disposed of by the Assessing Officer. Subsequent filings and lack of compliance from the respondent’s side paved the way for an assessment order passed under section 144 of the Act, marking the income at Rs.3,29,66,160/- as taxable under sections 69A and 115BBE of the Act.

The Appeal and its Resolution

The appellant’s appeal before the Tribunal highlighted the complexities involved in transactions between the assessee and M/s. Shubhkamna Buildtech Pvt. Ltd. The appellant’s argument rested on the unfulfilled agreement and the non-realization of cheques issued as part of a commission arrangement. Deliberations at the Tribunal focused on whether the cheques were returned, any amount was taken in lieu of those cheques, and if any part payment was received by the assessee in any other form.

Conclusion and Implications

In a significant turn of events, the Tribunal, after considering the peculiar facts and circumstances, allowed the appeal filed by the Revenue Department for statistical purposes. This judgment sheds light on the intricacies of tax law interpretation and enforcement, particularly concerning deemed income and the responsibilities of assessees and appellants in proving their claims.

Reflection

The case of ITA No. 1348/DEL/2022 between ACIT Central Circle-II, Noida and Rishi Agarwal serves as a landmark instance of how complex the interpretation of transactions and the applicability of tax laws can be. It emphasizes the need for clear evidence and compliance with procedural mandates in tax assessments and appeals.

Income Tax Appeal Analysis: Case ITA 1348/DEL/2022 – ACIT Central Circle-II, Noida vs. Rishi Agarwal