The Delhi Income Tax Appellate Tribunal ( ITAT ) remanded the addition of Rs. 1,473.8 crore as unexplained money for fresh assessment due to a lack of fair hearing.
The assessee, Alok Dev, filed his income tax returns for Assessment Year 2018-19, declaring Rs. 3,33,950 as income. His return was selected for scrutiny under the Computer-Assisted Scrutiny Selection (CASS) system due to high-risk transactions. Despite multiple notices issued by the Assessing Officer (AO), the assessee failed to respond, resulting in an ex parte assessment. The AO assessed Shri Dave’s total income at Rs. 1,474.1 crore, including Rs. 1,473.8 crore as unexplained money under Section 69A of the Income Income Tax Act, 1961, and issued penalty notices separately.
Law and Procedure for Filing of Appeals
The assessee appealed before the Commissioner of Income Tax (Appeals) [CIT(A), contending that the addition was unjustified and disproportionate. However, the CIT(A) dismissed the appeal, citing non-cooperation from the appellant despite multiple opportunities for explanation.
The assessee’s counsel contended that the earlier proceedings were conducted without providing him a reasonable opportunity to present his case.
ITAT observed that “we are of the considered view that both the lower authorities ought to have given a reasonable and adequate opportunity of being heard to the assessee.”
The bench, comprising Vikas Ashwathy ( Judicial Member ) and Naveen Chandra ( Accountant Member ) observed that the authorities had failed to uphold basic principles of natural justice by not giving the assessee a reasonable chance to present his case. The bench remanded the case and directed the assessing officer to re-examine the matter, ensuring that the assessee is given a fair opportunity to submit all relevant documents and clarifications.
The appeal of the assessee was allowed for statistical purposes.
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