Kishan Singh vs ITO Faridabad: A Challenge Against an Ex Parte Order – ITA No. 1366/DEL/2022
Introduction
The case ITA No. 1366/DEL/2022 marks a significant judgment in the realm of income tax law, involving the appellant, Kishan Singh from Faridabad, and the respondent, the Income Tax Officer (ITO), Ward -1(4), also from Faridabad. This case was brought before the Income Tax Appellate Tribunal (ITAT) in Delhi, challenging an ex parte order passed under Section 144 of the Income Tax Act by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2012-13.
Background
Kishan Singh, a farmer by profession, finds himself in a legal battle challenging the order passed by the NFAC. The case delves into the complexities arising from an assessment order issued without proper service of notice, deemed ‘bad in law’ and ‘anfractuous’ by the appellant. The grounds of appeal raise critical questions about the legality of the proceedings and the consequent order that adversely affected Singh.
The Issue at Hand
The core issue stems from the appellant’s receipt of enhanced compensation for agricultural land acquired by the District Revenue Officer, Faridabad. This compensation, amounting to Rs 50,63,672 during the assessment year 2012-13, became the crux of the dispute when a portion of it, claimed to be re-deposited in the bank, was added to Singh’s income, leading to allegations of unexplained money under Section 69 of the Income Tax Act, 1961.
Arguments and Proceedings
Throughout the proceedings, the appellant’s counsel argued that the addition made by the Assessing Officer (AO) was baseless and illegal, requesting the tribunal to delete the addition. On the other side, the respondent’s representative supported the orders passed by the lower authorities, maintaining the stance that the appeal lacked merit.
Judicial Analysis and Conclusion
In a detailed judgment, the tribunal meticulously examined the submissions, evidence, and legal precedents. It highlighted the factual inconsistencies in the AO’s decision and the failure of the CIT(A) to appreciate the evidence provided by the appellant. In a landmark conclusion, the tribunal allowed the appeal, directing the AO to delete the addition, thereby setting aside the orders of the authorities below. This judgment not only provided relief to Kishan Singh but also set a precedent on the principles of natural justice, proper notice, and the importance of considering factual evidence in tax assessments.
Conclusion
The case of Kishan Singh vs ITO, Ward-1(4), Faridabad showcases the critical role of the ITAT in rectifying errors and ensuring that justice is served. By challenging an ex parte order successfully, the appellant not only secured a favorable verdict but also underscored the paramount importance of due process and fair hearing in the judicial process, especially in tax-related disputes.
