Case Law Details
Rajesh Kumar Vij Vs ITO (ITAT Delhi)
In the case of Rajesh Kumar Vij Vs ITO, the Income Tax Appellate Tribunal (ITAT) Delhi addressed an appeal related to unexplained money addition under Section 69A of the Income Tax Act, 1961. The matter pertained to the assessment year 2017-18, where the Assessing Officer (AO) added ₹11.45 lakh as unexplained money under Section 69A, taxed at the higher rate under Section 115BBE. The appeal arose from the CIT(A)/NFAC’s affirmation of the AO’s decision without a detailed examination of the facts, as required under Section 250(6) of the Act.
The ITAT observed that the lower appellate authority failed to analyze and record the relevant factual matrix or frame points of determination. Highlighting the procedural lapse, the tribunal deemed it necessary to remit the case back to the CIT(A)/NFAC for a fresh examination. The ITAT emphasized that the taxpayer bears the responsibility to present and prove all relevant facts in the re-assessment process. The tribunal granted three opportunities to the taxpayer to make their case effectively during the remanded proceedings.
This case references the legal requirement for appellate authorities to follow the mandate of Section 250(6), which necessitates structured adjudication. Judicial precedents, such as CIT v. Toyota Motor Corporation [2008] 306 ITR 52 (Delhi), emphasize the obligation of appellate bodies to provide reasoned orders based on detailed examination. By remanding the case, the ITAT reinforced the importance of procedural justice in income tax assessments.
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’ s appeal for Assessment Year 2017-18 , arises against the order of CIT( A)/ NFAC, Delhi dated 20.03 .2024 in case No. ITBA/NFAC/ S/250 /2023-24/1062989974(1) in proceedings u/s 147 r.w. s. 144 of the Income Tax Act, 1961 ( in short “The Act”).
2. Heard both parties at Case files perused.
3. It is emerges at the outset that the able assistance coming from both the parties that CIT( A)/ NFAC’s lower appellate discussion herein affirming the Assessing Officer section making section 69A w.s. 115BBE unexplained money addition of Rs.11 .45 lacs in the course of assessment dated 10.03. 2023 , has nowhere dealt with the relevant factual matrix as contemplated u/ s 250 (6 ) of the Act requiring him to frame points of determination followed by a detailed discussion there upon.
4. That being the case, it is deem it appropriate in the larger interest of justice to remit the file back to the CIT(A)/NFAC for afresh effective innings with a rider that it shall be the taxpayer risk and responsibility only to plead and prove all the relevant facts three effective opportunities in consequential Ordered accordingly.
5. This assessee’ s appeal is allowed for statistical purpose in above terms.
Order Pronounced in the Open Court on 21 /11/2024.
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