Jusbinder Kour Vs ITO (ITAT Delhi)
Silence Is No Substitute for Reasons: ITAT Restores Appeal Against ₹1.55 Crore Additions
Non-Compliance Does Not End the Duty to Decide
The Delhi Bench of the Income Tax Appellate Tribunal, in Jusbinder Kour v. ITO, held that the Commissioner of Income Tax (Appeals) cannot dismiss an appeal merely because the taxpayer fails to respond to notices. Even in an ex parte proceeding, the appellate authority must examine the issues and pass a reasoned order on merits in accordance with Section 250(6) of the Income-tax Act, 1961.
The Tribunal set aside the appellate order and restored the matter to the CIT(A) for fresh adjudication. However, it expressly clarified that it had not decided the merits of the additions. The assessee therefore received another opportunity to establish her case, rather than deletion of the disputed income.
Cash Deposits and Property Purchase Triggered Reassessment
The assessee, an individual, filed her return for Assessment Year 2020-21 on 4 January 2021, declaring income of ₹10,41,800, including salary income.
The Assessing Officer received information concerning cash deposits of ₹21,90,000 and the purchase of an immovable property for ₹74 lakh. According to the Revenue, these transactions were not commensurate with the income disclosed in the return.
