Case Law Details
Poonam C/o Sanjeev Anand and Associates Vs ITO (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi’s recent order in the case Poonam C/o Sanjeev Anand and Associates Vs ITO has attracted a lot of attention. The tribunal set aside an earlier decision made by the Commissioner of Income Tax (Appeals) [CIT(A)], emphasizing the need to provide the assessee with a due opportunity to establish a case of non-receipt of statutory notices. This article delves into the specifics of the case and what it means for taxpayers and legal practitioners alike.
Key Background of the Case: Poonam, the assessee, had appealed against two orders dated 26.10.2022 for the assessment year 2011-12. While the first appeal was about quantum proceedings, the second was against the imposition of a penalty under Section 271(1)(c) of the Income-Tax Act, 1961.
Absence of Assessee and Validity of Assessment: The ITAT proceeded to handle the case ex parte due to the absence of the assessee. The assessee had not filed a tax return for the year when she had purchased an immovable property. The Assessing Officer consequently issued multiple notices, and failing to get a response, completed the assessment on a ‘best judgement’ basis.
Key Points Raised by the Assessee: Before the CIT(A), the assessee argued that no notices were received and that the actual investment in property was only Rs. 34,00,000, whereas the Assessing Officer had considered it to be Rs. 75,84,000 based on the circle rate.
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