Case Law Details
Simple Singh Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi recently passed a crucial judgment in the case of Simple Singh vs. the Income Tax Officer (ITO), ruling on the nature of additions made without proper verification.
In this case, the Revenue Department reopened Singh’s case due to investments in immovable property, and due to lack of response from Singh, the assessment was conducted ex parte. Despite Singh submitting crucial evidence that could potentially alter the case’s outcome, the Commissioner of Income Tax (Appeals) upheld the additions without verifying these pieces of evidence.
The ITAT, taking a critical view, found this addition without verification to be unjustified. The tribunal directed the lower authorities to examine the evidence presented by Singh diligently. If the Assessing Officer (AO) finds that Singh had enough funds to invest in the immovable property, they are directed to delete the addition.
FULL TEXT OF THE ORDER OF ITAT DELHI
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