Nirmala Dass Vs ITO (ITAT Delhi)
In the case of Nirmala Dass vs. ITO, the Income Tax Appellate Tribunal (ITAT) addressed an appeal concerning the addition of ₹42.26 lakh made by the Assessing Officer (AO) under Section 144 of the Income Tax Act, 1961, for unexplained cash deposits during the financial year 2011-12. The reassessment was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi. The assessee contended that the reassessment order and the subsequent addition were made without proper jurisdiction and that the cash deposits had legitimate sources. The assessee also claimed that the lack of compliance was due to non-receipt of notices from the Revenue authorities.
The ITAT reviewed the case and observed that both the AO and CIT(A) proceeded ex-parte due to the alleged non-response from the assessee. Considering the plea of non-receipt of notices, the Tribunal deemed it necessary to remand the matter to the AO for fresh adjudication. The AO was directed to reassess the case after providing the assessee with an adequate opportunity to present their case. This decision ensures adherence to the principles of natural justice. The appeal was allowed for statistical purposes, and the matter was sent back for a detailed review.
