Case Number: ITA 5456/DEL/2019
Appellant: Satpal, New Delhi
Respondent: ITO Ward-65(2), New Delhi
Assessment Year: 2012-13
Result: Final Tribunal Order
Case Filed on: 2019-06-19
Date of Order: 2023-01-23
Pronounced on: 2023-01-23
The case of Satpal vs. ITO Ward 65(2), New Delhi concerns the assessment year 2012-13. The primary issues in dispute were the cost of acquisition of a sold property and unexplained credit entries in the bank account of the assessee, Satpal.
Satpal filed his income tax return for the year declaring a modest income. The case was selected for scrutiny after which discrepancies were noticed by the Assessing Officer (AO) in the reported income and the information available through banking channels.
The AO discovered that Satpal had sold property but failed to provide adequate documentation regarding the cost of acquisition, leading the AO to assume the cost as zero, thus inflating the perceived gains significantly. Additionally, credit entries in Satpal’s bank account could not be explained, prompting further additions to his taxable income.
The initial appeal to the CIT(A) did not go in favor of Satpal due to lack of cooperation and failure to provide necessary documentation. As a result, the additions made by the AO were upheld. Dissatisfied with the outcome, Satpal appealed to the Income Tax Appellate Tribunal.
The Tribunal acknowledged the need for a fair reassessment and remitted the case back to the CIT(A). The decision emphasized the importance of providing the taxpayer another opportunity to present relevant documentation and substantiate his claims.
The Tribunal’s decision to remand the case back to the CIT(A) illustrates the judiciary’s commitment to ensuring that each case is judged on the strength of the evidence provided, allowing for a just conclusion based on the merits of the evidence.
Order pronounced in the open court on 23rd January, 2023.
Signatories:
Shamim Yahya, Accountant Member
Astha Chandra, Judicial Member
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