Case Law Details
Satish Tyagi Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi recently addressed an appeal filed by the assessee, Satish Tyagi, against the order of the Commissioner of Income Tax (Appeals)-Ghaziabad. The primary issue revolved around an ex-parte assessment passed under Section 144 of the Income Tax Act, which the assessee claimed did not provide him with adequate opportunity to present his case.
In the case, Tyagi’s counsel urged that the assessment should be returned to the Assessing Officer (AO) for re-evaluation in accordance with the law, citing an identical fact situation involving Tyagi’s brother, Amrish Kumar. The AO, it was argued, had insufficiently considered the facts and circumstances, leading to the ex-parte assessment under Section 144. The Revenue, however, argued that the reopening was for revenue’s benefit and, therefore, the returned income could not be assessed lower in the reassessment process.
Upon review, the ITAT decided in favour of Tyagi, ordering the appeal to be returned to the AO for a fresh evaluation. The AO was instructed to redetermine the issue impartially, in accordance with the law, and to consider the judgment of the Supreme Court in the case of CIT vs. Sun Engineering Works Pvt. Ltd.
FULL TEXT OF THE ORDER OF ITAT DELHI
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