Girja Shankar Vs ITO (ITAT Lucknow)
In the case of Girja Shankar Vs ITO before the ITAT Lucknow, the assessee appealed against the addition of ₹57.03 lakh to his income and a related penalty of ₹22.37 lakh. The Assessing Officer (AO) had determined these amounts based on cash deposits of ₹36.50 lakh and ₹20 lakh in the assessee’s bank account. This assessment was carried out ex-parte as the assessee failed to respond during the initial proceedings. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO’s decision, dismissing the assessee’s appeals for insufficient evidence regarding the source of the cash deposits.
Upon review, the ITAT found procedural lapses, noting that both the AO and CIT(A) had issued summary, non-speaking orders, which did not provide the assessee a fair opportunity to present his case. To rectify this, the ITAT quashed the earlier orders and remanded the matter to the AO for fresh adjudication. The tribunal directed the AO to conduct a de novo assessment, ensuring reasonable opportunities for the assessee to be heard. The imposition of penalties under Section 271(1)(c) will depend on the outcome of the reassessment. This judgment emphasizes the importance of due process in income tax proceedings.
FULL TEXT OF THE ORDER OF ITAT PUNE
