No Plot, No Profit, Still Taxed :When AO Shoots the Wrong Person: Middleman Dragged into 56(2)(ix) Tax Trap

Saroj Devi Haldiya Vs ITO (ITAT Jaipur)

No Plot, No Profit, Still Taxed :When AO Shoots the Wrong Person: Middleman Dragged into 56(2)(ix) Tax Trap; Two-Day Show Cause, Zero Natural Justice: ITAT Called to Restore Fair Play!

Background

• Assessee filed return declaring ₹13.37 lakh.
• Reassessment u/s 147/144B completed at ₹88.72 lakh.
• Major addition: ₹75,00,000 u/s 56(2)(ix) (forfeited advance).
• Other disallowances: ₹34,647 (u/s 57) & ₹83,453 (capital loss restriction).
• CIT(A)

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