Case Law Details
Baldev Raj Chhabra Vs ITO (ITAT Delhi)
ITAT find that both AO & CIT (A) have acted upon, only on the presumption and without any substantive material for making and sustaining the addition under consideration. In our considered view the presumption cannot be real adjudication of an issue. The very purpose of income tax proceedings is to correctly assess the tax liability of an Assessee in accordance with law but not under presumption as held in this case. Article 265 of the Constitution of India prescribes that no tax shall be levied or collected except by the authority of law. The Hon’ble Allahabad high Court in the case of Pt. Sheo Nath Prasad Sharma Vs. C.I.T., 66 ITR, p.647 (All.) reminded that the law empowers the Income-tax Officer to assess the income of an Assessee and determine the tax payable thereon in accordance with law.
Hence on the aforesaid analyzations and considering the peculiar facts and circumstances of the case and specific prayer of the Assessee for remand of the case, we for the ends of justice, deem it appropriate to remit this case to the file of the AO for decision afresh.
FULL TEXT OF THE ORDER OF ITAT DELHI
The Assessee has preferred the instant appeal against the order dated 17.11.2011, impugned herein, passed by the Ld. Commissioner of Income-tax (Appeals), Karnal (in short Ld. Commissioner) u/s 250(6) of the Income-tax Act, 1961 (in short “the Act”) for the assessment year 2011-12, whereby the assessment order passed by the AO u/s 143(3)/ 144 of the Act was upheld.
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