Dharam Pal vs. The Income Tax Officer, Ward 1(1), Faridabad

Parties Involved

Facts Summary

The assessee, Dharam Pal, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld the orders of the Assessing Officer (AO) passed under sections 147 and 271(1)(c) of the Income-tax Act, 1961. The AO had reopened the assessee's case for allegedly making an investment of Rs.95,50,000/- during the Financial Year 2009-10 relevant to the Assessment Year 2010-11. The assessee had declared income of Rs.1,59,520/- for the said assessment year. The source of the investment did not match the income declared, leading to an addition of Rs.1,00,27,500/- as unexplained investment. The assesse's appeal was dismissed by the Commissioner of Income Tax (Appeals) without condoning the delay of 2272 days. The assessee argued that he was not served with any notice and was unaware of the proceedings until his bank account was attached.…

Legal Issues

• 1. Whether the jurisdictional conditions were specified for the reopening of the assessment under section 147 of the Act.
• 2. Whether the reasons for reopening the assessment were recorded properly and if the approval for issuing the notice was granted with proper application of mind.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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