Case Law Details
Pawanveer Singh Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) of Delhi recently delivered a crucial order in the Pawanveer Singh vs Income Tax Officer (ITO) case. This case pertains to the assessment year 2012-13 and concerns the taxation on a sum received from a mother-in-law as part of a court settlement. After the addition of INR 12,00,000 to the appellant’s income by the Assessing Officer (AO) and the subsequent approval by the Commissioner of Income Tax (Appeals), the appellant filed an appeal to the ITAT. The ITAT has now called for a fresh adjudication of the matter.
The ITAT Delhi’s ruling is significant for its emphasis on verifying the correctness of the assessee’s claims. The appeal lodged by Pawanveer Singh alleged a failure to investigate the legitimacy of the INR 12,00,000 that he received from his mother-in-law. This income was initially added to Singh’s income as unexplained, leading to an increased tax liability.
The appellant’s arguments addressed violations of the principles of natural justice and the need to ascertain the true nature of the sum received. After hearing the representatives, the ITAT set aside the impugned order, restoring the assessment to the AO for fresh consideration. The AO has been directed to re-assess the source of the INR 12,00,000 and provide ample opportunity for the appellant to justify his claim.
FULL TEXT OF THE ORDER OF ITAT DELHI
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