Case Law Details
Kishan Singh & Associates Vs ITO (ITAT Delhi)
The case involved an addition of Rs. 10,00,000/- made by the Assessing Officer under sections 69A and 115BBE of the Income Tax Act, due to the non-filing of Return of Income.
Analysis: The dispute arose from an error where the PAN of a dissolved partnership firm, M/s Kishan Singh & Associates, was linked with a bank account instead of the PAN of the proprietorship firm run by Ms. Arti Chauhan. The appellant argued that the cash deposits had been declared in the ITR of the proprietorship firm, but the AO rejected the claim and added the cash deposits to the income of the assessee. The CIT(A) upheld the AO’s order, leading to the appeal before the ITAT.
The ITAT noted that the assessment order was framed against a non-existent entity – the partnership firm – and not the actual proprietorship firm. Upon noting that the bank account was indeed operated by Ms. Arti Chauhan, the ITAT directed the AO to delete the impugned addition, giving a significant win to the assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
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