DCIT Vs Imran (ITAT Delhi)
ITAT Delhi: CIT(A) Empowered to Set Aside Assessment Post 01.10.2024 Amendment – Revenue’s Appeal Dismissed
Delhi Tribunal upheld the order of the CIT(A) who had set aside an ex-parte assessment and directed AO to frame a fresh assessment in accordance with law. Tribunal dismissed the appeal of the Revenue, holding that the power exercised by the CIT(A) was valid in light of the amendment to section 251(1)(a) effective from 01.10.2024.
The case originated from information received by the Investigation Wing regarding interception of cash of ₹7.39 lakh along with incriminating documents from the possession of the assessee. The case was centralized and notice u/s 153C was issued. Assessee, despite having filed a return earlier declaring income of ₹10.08 lakh, did not respond to notices issued in the 153C proceedings. AO proceeded ex-parte and made heavy additions, including ₹19.92 lakh towards alleged commission income and ₹19.92 crore as unexplained credits u/s 68 r.w.s. 115BBE.
On appeal, CIT(A) observed that the assessment had been framed without proper participation from the assessee & invoking the amended provisions of section 251(1)(a), set aside the order of AO and directed a fresh assessment. Revenue contended before the Tribunal that since assessee failed to cooperate, the additions should have been confirmed.
