Case Law Details
Dr. Shyam Sunder Doda Vs ACIT (ITAT Delhi)
In the case of Dr. Shyam Sunder Doda Vs Assistant Commissioner of Income Tax (ACIT), ITAT Delhi reinforced the principle that no tax additions can be made based on evidence that has not been confronted to the assessee. The ruling highlights the necessity of due process and upholding the assessee’s rights in taxation matters.
Analysis: In this appeal, Dr. Shyam Sunder Doda challenged the confirmation of the Assessing Officer’s (AO) additions by CIT(A). The core issue revolved around the addition of Rs. 16,24,000/- made by the AO, which was based on evidence discovered during a search and seizure operation. The documents and statements collected during this operation were not confronted to the assessee during assessment proceedings.
ITAT Delhi noted that the Assessing Officer made additions based on documents and statements made by third parties during a search and seizure operation. However, this evidence was never confronted to the assessee, depriving them of the chance to rebut it.
The Tribunal relied on its decision in the case of Shaleen Prasad vs. ITO, wherein it was held that additions based on evidence not confronted to the assessee are unsustainable and invalid. Following this precedent, the ITAT Delhi ruled that the additions made by the AO in Dr. Doda’s case were not justified and ordered their deletion.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
