The case of ITA No. 3695/DEL/2019 involves an appeal by Bhasin Motors India Pvt. Ltd. against the Income Tax Officer, Ward-4(4), New Delhi, for the assessment year 2012-13. This document outlines the proceedings and pivotal legal arguments presented during the case, particularly focusing on the adherence to the principles of natural justice.
Bhasin Motors India Pvt. Ltd., located at 28, Raja Garden, New Delhi, filed its return of income for the assessment year 2012-13, declaring a total income of INR 1,59,10,073 on September 25, 2012. The case was subsequently reopened by the Income Tax Department, leading to an order on December 30, 2017, under sections 143(3) and 147 of the Income Tax Act, 1961. The assessment resulted in disallowances including unexplained unsecured loans amounting to INR 1,71,05,000 and other expenditure of INR 3,00,000.
The initial appeal to the Commissioner of Income Tax (Appeals) was dismissed ex-parte, prompting the appellant to challenge the decision before the Income Tax Appellate Tribunal, Delhi Bench. The primary legal challenges involved assertions that the reassessment order was issued without proper jurisdiction and that the notices under section 148 were flawed both procedurally and substantively. Furthermore, the appellant contested the disallowances made on the grounds of insufficient evidence and improper application of law.
On hearing the arguments, the Tribunal, chaired by Shri Kul Bharat, Judicial Member, and Shri M. Balaganesh, Accountant Member, acknowledged the lack of adequate opportunity for the assessee to present its case. The Tribunal set aside the order of the CIT(A) and remanded the case back for a fresh decision, ensuring that the assessee would be given a proper hearing. This decision highlights the Tribunal’s commitment to ensuring fairness and adherence to the principles of natural justice in tax proceedings.
The Tribunal’s decision to remand the case back to the CIT(A) for a comprehensive review underscores the critical role of procedural fairness in the judicial process. This case serves as a significant precedent for upholding the principles of natural justice in the face of administrative oversights.
The order was pronounced in the open court on October 18, 2023, marking a significant moment in the proceedings of ITA No. 3695/DEL/2019.
ITA 3695/DEL/2019: Bhasin Motors India Pvt. Ltd. vs ITO Ward-4(4) for Assessment Year 2012-13
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