Case Number: ITA 774/DEL/2020
Appellant: Siddhbali Metals, Delhi
Respondent: ITO, Ward-2(4), Faridabad
Assessment Year: 2016-17
Result: Assessment order challenged
Case Filed on: 2020-02-12
Order Type: Final Tribunal Order
Date of Order: 2023-01-19
Pronounced on: 2023-01-19
The case involves an appeal by Siddhbali Metals against the Commissioner of Income-tax (Appeals), Faridabad’s decision regarding reassessments and additional taxes for the fiscal year 2016-17. The issues center on disputed cash transactions and the legitimacy of certain deductions and purchases.
The appeal challenges several decisions, including the reliance on third-party statements for reassessment and the addition of unverified income. The appellant argued that the reassessment was based on flawed evidence and procedural errors, citing the lack of corroborative backing for third-party claims.
Key issues include the legality of reassessments based on ‘rubber-stamp’ reasons, alleged violations of cash transaction rules under Section 40A(3), and disputes over purchase verifications and sales reconciliations. The appellant also contested the denial of procedural justice, claiming that critical evidence was disregarded.
The tribunal considered extensive arguments and precedents regarding the admissibility of third-party statements and the requirements for corroborative evidence. The handling of cash transactions and the rationale behind the challenged additions were scrutinized.
The tribunal’s decision partially addressed the appellant’s concerns, leading to a mixed outcome. Some issues were remanded for further verification, indicating procedural lapses in the original assessment process. The case highlights the complexities involved in dealing with unorganized sectors like scrap metal trading and the challenges in maintaining clear transaction records.
Order Pronounced in the Open Court on 19/01/2023
Members:
Assistant Registrar: MP
Siddhbali Metals vs ITO, Ward-2(4) – ITA 774/DEL/2020: Challenging Reassessment and Additions
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