Pandit Realtor P.Ltd, based in Ghaziabad, filed an appeal against the ex parte decision of CIT(A) -7, New Delhi for the assessment year 2014-15. This case was heard by the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal.
The company filed its return for the 2014-15 fiscal year on November 6, 2014, declaring an income of Rs.50,64,580. However, subsequent assessments by the AO on December 22, 2016, significantly adjusted the income to Rs.2,00,80,767, leading to various contentious additions such as unexplained share subscriptions and cash deposits, among others.
Unexplained Financial Transactions: The tribunal examined substantial additions including a Rs.1,00,00,000 unexplained share subscription and Rs.37,00,000 in unexplained cash deposits. These additions were critical in re-assessing the income at a much higher level than initially declared.
Penalties Under Section 271(1)(c): The AO also levied a significant penalty of Rs.46,56,630 based on the unexplained transactions, which was upheld by the CIT(A) in an ex parte decision due to non-appearance of the appellant.
Tribunal’s Ruling: On appeal, the tribunal recognized the need for a fair hearing and remanded the case back to the CIT(A), directing a final opportunity for the assessee to present its case. This decision emphasizes the tribunal’s commitment to ensuring justice and allowing taxpayers to substantiate their claims adequately.
The tribunal’s decision to remand the case highlights procedural fairness and the importance of allowing parties to present their cases fully. This case underscores the complexities involved in dealing with unexplained financial transactions in tax assessments and the critical role of judicial oversight in ensuring equitable tax administration.
The decision was pronounced after virtual hearings, reflecting the adaptability of the judicial process in maintaining thoroughness and fairness even in virtual settings.
ITA No. 1012/DEL/2019 – Pandit Realtor P.Ltd vs. DCIT, New Delhi: Detailed Case Analysis
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