Case Law Details
Abid Ali Khan Vs ITO (ITAT Delhi)
Introduction: The recent decisions by the Income Tax Appellate Tribunal (ITAT) Delhi in the case of Abid Ali Khan vs. ITO shed light on the importance of proper inquiry by the Assessing Officer (AO). The appeals, related to the assessment year 2011-12, highlight the tribunal’s directive to conduct a fresh assessment based on available evidence.
Detailed Analysis: Abid Ali Khan, an individual engaged in the trading business, filed a return of income for the Assessment Year 2011-12, declaring taxable income at NIL. The scrutiny assessment by JCIT, Range, Bulandshahr, resulted in disallowance of Rs. 17,03,733/- representing loss on cancellation of orders. The income was assessed at Rs. 17,03,730/-.
Subsequently, PCIT, Ghaziabad, issued a notice in March 2015 under section 263, deeming the assessment order as erroneous and prejudicial to the interests of the Revenue. The notice raised concerns about the carry forward losses, introduction of fresh capital, and profitability. The PCIT, Ghaziabad, set aside the assessment order, directing the AO to conduct a fresh assessment after proper examination.
The assessee raised objections, including jurisdictional issues due to a change in CBDT’s jurisdictional notifications. The PCIT, Ghaziabad, did not address this objection specifically. The lack of valid jurisdiction was raised before the tribunal.
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