Case Law Details
Anita Arora Vs ACIT (Delhi High Court)
In a noteworthy judgment, the Delhi High Court quashed the Income Tax notice issued against petitioner Anita Arora in the case Anita Arora Vs ACIT. The court concluded that the error in depositing tax was not relevant to the assessment year under scrutiny.
The issue centered around the Assessment Year (AY) 2016-17. The petitioner had received a considerable sum from the sale of a property and also made an investment in bonds. However, the tax for this transaction was mistakenly deposited for AY 2016-17 instead of AY 2015-16. The court scrutinized the circumstances and noted that the petitioner had provided a detailed reply emphasizing that the transaction had been concluded in the AY 2015-16. It was also noted that the demand for AY 2015-16 had been reduced to “nil” after a correction order was passed. Considering these factors, the court concluded that the petitioner’s reply should have been considered before passing the order, which might have averted the mistake.
The Delhi High Court, in its verdict, set aside the impugned order and allowed the Assessing Officer to reexamine the issue. It ordered the issuance of a fresh notice if the proceedings recommence and highlighted the necessity of providing a personal hearing to the petitioner or her authorized representative.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
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