An in-depth review of ITA No. 1070/Del/2020, involving White House Infra Developers P.Ltd’s appeal against an ex-parte order and a contentious disallowance of a business advance by the ITO, Ward-2(5), Faridabad.
The case centers around a disputed business advance of Rs. 50,00,000 made to Shubh Propbuild Pvt. Ltd. during the financial year 2010-11, which was returned within the same year, and the subsequent disallowance by the ITO.
The CIT(A) confirmed the disallowance, leading to an appeal by White House Infra Developers P.Ltd. The tribunal focused on whether the CIT(A)’s ex-parte decision was justified and whether adequate opportunities were provided to the appellant to present their case.
The ITAT observed that the appellant had not received proper notices for the hearings, which raised questions about the fairness of the proceedings. The tribunal decided to remand the case back to the CIT(A) to reassess the matter, ensuring that the appellant received a fair chance to contest the allegations and present supporting evidence.
The decision to remand the case underscores the importance of procedural fairness in tax assessments and appeals. It highlights the need for tax authorities to provide clear communication and adequate hearing opportunities, especially in complex financial disputes involving large sums.
ITA 1070/DEL/2020: Business Advance Dispute and Ex-Parte Order Appeal
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