Case Law Details
Navneet Bhardwaj Vs PCIT (ITAT Delhi)
In a pivotal judgment, the Income Tax Appellate Tribunal (ITAT) Delhi has set aside the revisionary order u/s 263 of the Income Tax Act, dated 27.03.2021, passed by the Principal Commissioner of Income Tax (PCIT), Dehradun. The case, Navneet Bhardwaj Vs PCIT, revolves around the assessment year 2016-17 and primarily deals with the legality of large cash deposits in a savings bank account.
The Grounds Raised by the Assessee: Navneet Bhardwaj, the assessee, raised several grounds for appeal. The primary contention was that the Assessing Officer had thoroughly scrutinized the issues raised in the notice u/s 263. Bhardwaj argued that the assessment order dated 19-12-2018 is neither erroneous nor prejudicial to the interests of the revenue.
Arguments by the Assessee’s Counsel: The counsel for the assessee claimed that sufficient and adequate inquiry was made into the source of the large cash deposit amounting to Rs. 66,87,000. The deposit was attributed to fee collection from Mount Litera School, Muzzafarnagar, run by a trust in which the assessee held the position of president.
Counter Arguments by the CIT(DR): The Commissioner of Income Tax (CIT)(DR) supported the revisionary order and argued that the assessment order could be termed as erroneous and prejudicial to the interest of revenue in the case of insufficient inquiry, as per explanation 2 to section 263 of the Act.
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