Income Tax Proceedings attached with Presumption of Truth: Non-Appearance Implies that Assessee has Nothing to Rebut, rules ITAT [Read Order]

The Income Tax Appellate Tribunal, Delhi bench has held that the income tax proceedings are attached with the presumption of truth and the non-appearance before the authorities would imply that the assessee has nothing to rebut with the authorities.

The assessee filed a return of income of Rs. 29,93,063/-. The total income of assessee comprised of income from capital gain. The case was selected in scrutiny to examine large deduction claimed u/s 54 of the Act. On notices being issued to the assesee, the AR was asked to produce the bills of the cost of improvement/ construction of the property sold by the assessee. After inquiry, the Assessing Officer treared the bills of total aggregate Rs. 17,21,940/- as bogus and the cost of construction was restricted to Rs. 7,78,060/-. Indexed cost of construction was calculated and based on that the Ld. AO added back the disallowed cost of construction to the capital gains declared by the assessee. The  AO had disbelieved the evidence of improvement in building by contractors and the Ld. AO had not confronted the assessee.

The notices sent to the assessee has been received un-served with the report “left without address”.

The Tribunal bench comprising Sh. G.S.Pannu, ITAT President and Sh. Anubhav Sharma, Judicial Member held that “giving a thoughtful consideration to the record, the Bench is of considered opinion that a presumption of truth is attached to the record of proceedings conducted by public authorities as reflected in their orders though the same is rebuttal. The assessee had the opportunity to rebut the findings of Ld. Assessing officer with regard to denial of the parties, who allegedly had issued bills. However, the assessee by his non-appearance failed to rebut the observations and findings of the AO by any evidence, before the Ld. First Appellate Authority. Rather non-appearance gives rise to presumption that assessee had nothing to rebut to the findings of the Ld. Assessing Officer. That being so there is no merit in the appeal. The same is dismissed.”

To Read the full text of the Order CLICK HERE

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