Case Law Details
Dominic Savio Dasilva Vs CIT (ITAT Delhi)
In the recent case of Dominic Savio Dasilva Vs CIT, the Income Tax Appellate Tribunal (ITAT) Delhi has set aside a previous order by the Commissioner of Income Tax (Appeals), citing a violation of the Rules of Natural Justice. The case revolves around the late disposal of an appeal filed by the assessee, a non-resident Indian (NRI), against an ex parte decision by the Commissioner of Income Tax (Appeals).
Dominic Savio Dasilva, a non-resident Indian residing in the United States, owns property in Goa, from which he earns rental income. The Assessing Officer noticed that during the demonetization period, Dasilva had deposited cash into his bank account. The Assessing Officer subsequently requested Dasilva to explain the source of these deposits.
Despite Dasilva’s explanation that the cash deposits were made from earlier withdrawals, the Assessing Officer found no merit in his submissions and added back the cash deposits of Rs. 13,43,000 to his income under section 69A of the Income-tax Act, 1961. Dasilva later appealed against this assessment order with a delay of 379 days, which he attributed to the failure of his Chartered Accountant to properly communicate the notices.
The ITAT Delhi, having heard both sides, determined that the assessee’s appeal had been dismissed without affording a reasonable opportunity for a hearing, constituting a violation of the Rules of Natural Justice. Therefore, the ITAT decided to set aside the previous order and restore the matter back for de novo adjudication.
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