The case of ITA No. 735/Del/2020, heard by the Income Tax Appellate Tribunal in Delhi, involved Bali Mohammad, a resident of Gurgaon, challenging the procedural and substantive aspects of his tax assessment for the assessment year 2011-12.
The case was reopened based on discrepancies noted in the assessee’s purchase transactions with the Haryana Forest Development Corporation Ltd., leading to an assessment of undeclared income. The initial proceedings by the Assessing Officer (AO) resulted in an assessment order with substantial additions based on alleged unexplained purchases.
The appeal highlights significant procedural flaws, including the non-receipt of statutory notices by the assessee, who is described as illiterate and unable to understand the implications of the notices purportedly served. The AO completed the assessment ex-parte, treating the transaction amount as unexplained income.
At the appellate level, the CIT(A) dismissed the appeal ex-parte due to non-appearance of the assessee, prompting further appeal to the Tribunal. The primary contention in the Tribunal was the failure of the tax authorities to adequately notify the assessee and allow proper representation.
The Tribunal, led by Shri Kul Bharat, acknowledged the procedural lapses and the need for a fair hearing. It was decided that the case should be remanded back to the CIT(A) to reconsider the issues afresh, providing Bali Mohammad an opportunity to represent his case adequately, thereby upholding the principles of natural justice.
This case underscores the critical importance of procedural fairness in tax assessments and the rights of taxpayers to be properly informed and heard. It also reflects the challenges faced by individuals who may lack the knowledge or resources to navigate complex tax proceedings.
The decision to remand the case back to the CIT(A) for a fresh assessment reflects the Tribunal’s commitment to ensuring that tax assessments are conducted fairly and in accordance with legal standards, particularly in cases involving procedural discrepancies.
Judicial Review of Bali Mohammad’s Assessment for AY 2011-12 in ITA 735/DEL/2020
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