Case Law Details
Syed Nadeem Abbas Vs ITO (ITAT Delhi)
Introduction: The case of Syed Nadeem Abbas Vs ITO sheds light on the importance of adherence to principles of natural justice and the proper application of law during assessment and appeal proceedings. In this instance, the Income Tax Appellate Tribunal (ITAT) has directed re-adjudication due to the incorrect email addresses used for sending hearing notices.
Detailed Analysis: Syed Nadeem Abbas, the appellant in this case, filed an appeal against the order of the learned Commissioner of Income-tax (Appeals), Delhi. The original order dated 12.12.2018 was passed by the Income Tax Officer (ITO), Ward-28(4), Delhi for the assessment year 2016-17 under Section 144 of the Income Tax Act, 1961 (the “Act”).
The appellant raised a critical ground of appeal, which questioned the fairness and legality of the assessment. The second ground, in particular, highlighted that both the assessment order passed by the ITO and the order passed by the National Faceless Appeal Centre (NFAC) were deserving of being quashed. The basis for this challenge was the alleged non-compliance with the principles of natural justice, settled legal precedents from various courts, and a perceived lack of application of mind in the assessment process.
The facts of the case reveal that the appellant’s assessment was chosen for limited scrutiny under the Computer Assisted Scrutiny Selection (CASS) program. The specific issue under scrutiny was the claim of a significant agricultural income amounting to Rs. 50,20,892. However, the appellant failed to provide any documentary evidence in support of this claim. Consequently, the ITO treated the claimed agricultural income as income from other sources and finalized the assessment ex parte due to the non-compliance with show-cause notices.
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