This case involves Gaurav Rastogi, the legal heir of Late Smt. Asha Rastogi, appealing against the order of the National Faceless Appeal Centre (NFAC) concerning cash deposits made into a bank account during the demonetization period. The appeal raises significant questions about the adequacy of the opportunity provided for representation and the adjustments made by the Income Tax Officer from Ward-1(5), Gurgaon.
The core issue revolves around the addition of Rs. 4,39,500 presumed as unexplained cash deposits. The appellant contends that the authorities did not properly consider the explanations regarding the source of the cash deposits, which were claimed to be from withdrawals, business receipts, and opening balances. The appeal also highlights procedural concerns related to the principles of natural justice due to the absence of representation caused by the Covid-19 pandemic and the subsequent death of Smt. Asha Rastogi.
The Tribunal, led by SHRI KUL BHARAT, recognized the procedural oversights and the impact of the appellant’s personal circumstances on his ability to represent the case adequately. It was decided that the matter would be remitted back to the Assessing Officer to reassess the case fairly, ensuring that the appellant is given a proper opportunity to present his case.
This case underscores the importance of ensuring that all parties in a tax dispute are given a fair opportunity to present their case, especially in situations where personal tragedies might affect their ability to respond to tax authorities.
The decision was pronounced in open court on February 27, 2023, allowing the appeal for statistical purposes and remanding the case back to the Assessing Officer for a fresh assessment.
Legal Case Analysis: Gaurav Rastogi vs. ITO, Ward-1(5), Gurgaon, ITA No. 2708/DEL/2022
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