This analysis delves into the case of Mukesh Chand Garg against the Income Tax Officer, Ward-49(3), New Delhi, for the assessment year 2009-10, challenging both the procedural aspects of reassessment under Section 147 and the substantive additions made to his income.
The case opens with the appellant, Mukesh Chand Garg, appealing against the order of the CIT(A)-17 dated 24.12.2018. The primary contention involves the reassessment proceedings initiated on the basis of information suggesting contrived losses through securities transactions.
The tribunal’s detailed examination focused on the approval process for reassessment under section 148, questioning the mechanical approval without proper application of mind, as highlighted in previous high court decisions. This procedural flaw led to the quashing of the reassessment.
On the merits, the tribunal also addressed the addition of Rs.4,39,342 claimed as exempt long-term capital gains. The decision referenced the favorable outcome in similar cases from the Bombay High Court, leading to the deletion of the contentious additions.
The tribunal’s decision in favor of Mukesh Chand Garg not only emphasizes the necessity for diligent administrative processes in reassessment but also reaffirms the taxpayer’s arguments against arbitrary additions. The case stands as a significant reference for issues of both procedural justice and substantive tax law.
ITA 794/DEL/2019: Mukesh Chand Garg vs ITO – Analysis of Contested Reassessment Procedures
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