Smt. Kanta Vs ITO (ITAT Delhi)
In the case of Smt. Kanta vs. ITO (ITAT Delhi), the appeal revolves around the validity of an order passed under section 154 of the Income Tax Act, 1961, concerning the assessment year 2010-11. The crux of the matter lies in the rectification of mistakes apparent from the assessment order, particularly regarding the investment made by the assessee in a property.
The Assessing Officer (AO) initially accepted the income returned by the assessee as nil, after considering all documentary evidence and personal appearances. However, after the assessment was concluded, the AO issued a notice under section 154, contending that the investment in the property was not adequately explained by the assessee during the assessment year. Consequently, the AO made an addition of Rs. 50,00,000/- to the assessee’s income.
In response, the assessee filed an appeal before the Tribunal, challenging the validity of the order passed under section 154. The grounds of appeal included contentions that the issue in question was not a mistake apparent from the record, that the AO attempted to review his own order passed under section 143(3), and that the source of the investment had been explained with proper documentary evidence.
