Case Law Details
Sachin Vasant Jare Vs ACIT (ITAT Pune)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Pune addressed an appeal by Sachin Vasant Jare against the order of the National Faceless Appeal Centre (NFAC), Delhi. The core of the dispute revolved around a substantial increase in the appellant’s capital account for the year A.Y.2015-16 and his opportunity to provide explanations in the face of this query.
Analysis: Sachin Vasant Jare, proprietor of S.V. Enterprises and engaged in the construction business, showed a large capital account increase during the relevant year. The Assessing Officer (AO) queried the source of this increase, particularly an addition of Rs. 1,00,24,373. While the appellant’s representative managed to explain portions of the increase, Rs. 70.00 lakhs remained unexplained and was treated as an unexplained investment.
On appeal, NFAC extended several opportunities for Mr. Jare to present his case. However, due to non-compliance or non-appearance, NFAC passed an ex-parte order based on the available records. Yet, when the case reached ITAT, the representative for Mr. Jare requested another opportunity to present their case, suggesting they had adequate evidence.
Considering the details of the case and the principles of natural justice, ITAT held that it is crucial to allow taxpayers to present their arguments wherever possible. Therefore, they set aside the NFAC order, granting Mr. Jare one more opportunity to present his case and evidence.
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