Case Law Details
Ghanshyam Sagarmal Modi Vs ACIT (ITAT Mumbai)
Introduction: In the recent case of Ghanshyam Sagarmal Modi vs. ACIT, the Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favor of the assessee, highlighting the justified non-appearance and quashing the assessment order made by the Assessing Officer (AO). The appeal was filed against the decision of the National Faceless Appeal Centre (NFAC) Delhi/CIT(A) under sections 143(3) and 250 of the Income Tax Act.
Detailed Analysis: The individual assessee, Ghanshyam Sagarmal Modi, filed an appeal against the order of the NFAC Delhi/CIT(A). The grounds of appeal included objections to the ex-parte order passed without providing adequate hearing opportunities to the appellant.
The AO, during the scrutiny under CASS, issued notices and questionnaires. The Ld. AR of the assessee complied with the notices, submitting details and participating in discussions. However, the AO, upon reviewing financial statements, found discrepancies in the information provided by the assessee regarding rental income and claimed expenditures.
The AO estimated additions under various heads, including income from house property and disallowance of expenses at 10%. The total income was assessed at Rs. 35,25,850/-. The appellant then filed an appeal before the CIT(A), who confirmed the AO’s actions due to non-compliance and dismissed the appeal.
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