Income Tax Appeal ITA 1115/DEL/2022: Ramesh Jethi vs. ITO, New Delhi – Assessment Year 2015-16, A Case of Custom Duty Mismatch

Income Tax Appeal Case Summary: Ramesh Jethi vs. Income Tax Officer, Ward-35(3), New Delhi – Assessment Year 2015-16

Introduction

The case of ITA No.1115/Del./2022 was heard by Income Tax Appellate Tribunal, Delhi Bench ‘F’. It involved appellant Ramesh Jethi and respondent Income Tax Officer (ITO), Ward-35(3), New Delhi, for the assessment year 2015-16. The crux of the dispute revolves around the addition of a significant amount due to a mismatch in custom duty reported in the Income Tax Return (ITR) and the data available from the export-import records.

Background of the Case

Ramesh Jethi, the appellant, challenged the order passed by ld. CIT (Appeals)-12, New Delhi, which pertained to an assessment for the year 2015-16. The primary grounds of appeal focused on the incorrect passing and sustaining of the order under section 144 of the Income Tax Act, 1961, and the issues related to the lack of reasonable opportunity of being heard, the non-admission of additional documents/evidences under Rule 46A, and the contentious addition of Rs.67,89,421/-, being the difference between the custom duty paid as per ITR and the data received from the AIR (Annual Information Return).

Arguments and Proceedings

Detailed in the appeal were several points of grievance raised by the appellant concerning the assessment order’s passing. The appellant argued that the Assessment Officer (AO) and CIT (Appeals) erred in their decisions, particularly regarding the ex-parte assessment order, the refusal to admit additional evidence, and making an unwarranted addition to the appellant’s income based on a purported mismatch in custom duty payments.

The case saw submissions from both sides, with the responding ITO being represented by Shri K.K. Mishra, Sr. DR during the proceedings. Despite attempts, the appellant was not present, leading to the tribunal proceeding in their absence.

Findings of the Tribunal

The tribunal, after careful consideration of the arguments and available records, noted that the appellant had indeed submitted additional evidence to the CIT (Appeals), which was unfortunately not admitted. The plea for the admission of additional documents aimed at clarifying the discrepancy in custom duty was rejected by CIT (Appeals).

In a significant observation, the tribunal highlighted the importance of allowing the appellant an opportunity to explain the submissions and documents before the AO. It was upon this basis that the tribunal decided that justice would be best served by remanding the issue back to the AO, directing them to reassess the case mindful of the new submissions made by the appellant. This move was aimed at ensuring a just and fair reconsideration of the appellant’s claims.

Conclusion and Judgment

The tribunal concluded by allowing the appeal for statistical purposes, making a crucial directive for the AO to take a fresh look at the matter in light of the new evidence and submissions provided by the appellant. This decision underscored the tribunal’s commitment to ensuring that justice was served, paving the way for a reevaluation of the custom duty addition that had been contested by Ramesh Jethi.

Implications of the Ruling

This ruling serves as a notable example of the appellate tribunal’s power to remand cases for further examination, ensuring that all evidences are thoroughly considered. It also highlights the necessity for taxpayers to be heard and for their submissions to be carefully examined, especially in complex matters dealing with technical discrepancies such as custom duty payments.

Income Tax Appeal ITA 1115/DEL/2022: Ramesh Jethi vs. ITO, New Delhi – Assessment Year 2015-16, A Case of Custom Duty Mismatch