Assessment Order by AO without Proper Examination of Documents is Invalid: ITAT Quashes Order [Read Order]

The New Delhi bench of the Income Tax Appellate Tribunal (ITAT) quashed the assessment order passed by the assessing officer without proper examination of documents and declared it as invalid as per the law. 

Ashish Gupta, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the assessment order completed by the assessing officer under section 153A of the Income Tax Act,1961. 

Rajeshwar Painuely, the counsel for the assessee contended that there were only four transactions of the assessee with the said company, and the addition was made against the satisfaction recorded for escapement of income which goes to prove that the assessee had not even gone through the four transactions wherein the escapement on account of provision of Section 2(22)(e) of the Income Tax Act. 

It was further submitted that the assessment was completed by the assessing officer without considering the material facts produced by the assessee and is liable to be deleted. 

P. Praveen Sidharth, the counsel for the revenue relied on the decisions of lower authorities and contended that there had been a failure on the part of the assessee to furnish the name of the company in which he had more than 10% shareholding during the assessment proceedings. 

The bench observed that the assessment completed by the assessing officer was not by considering the genuine documents which were produced by the assessee and were not as per the law. 

The two-member bench comprising B. R. R. Kumar ( Accountant) and Yogesh Kumar US (Judicial) held that the assessment completed cannot be held to be legally valid and is liable to be quashed while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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