ITA Nos. 3263 & 3264/Del/2024

Parties Involved

Facts Summary

The Assessing Officer passed an exparte assessment order under section 144 of the I.T. Act, 1961 on 13.12.2022. The final computation of taxable income as per the AO’s assessment order included unexplained expenditure as purchases, disallowance of deduction under section 80C, and disallowance of interest on borrowed capital for house property. Upon the assessee's appeal, the Chief Commissioner of Income Tax (Appeals) dismissed the appeal for non-compliance. The assessee then appealed to the Income Tax Appellate Tribunal. During the hearing, no one appeared on behalf of the assessee, and the Department representative agreed that the Assessing Officer passed the exparte order and the Chief Commissioner of Income Tax (Appeals) dismissed the appeal for non-compliance. The Tribunal decided to remit the issues back to the Assessing Officer for fresh adjudication.…

Legal Issues

• 1. Whether the Assessing Officer erred in confirming the order passed under section 144 by upholding whole of the purchases as unexplained expenditure without considering the sales against those purchases.
• 2. Whether the Chief Commissioner of Income Tax (Appeals) erred in confirming the addition without appreciating that in case of trading business no sales can be affected without any purchases.
• 3. Whether the Chief Commissioner of Income Tax (Appeals) erred in dismissing the appeal by fixing two dates, hence not providing sufficient time to opportunity of being heard and violated the principle of natural justice.
• 4. Whether the Chief Commissioner of Income Tax (Appeals) erred in not providing sufficient opportunity to produce evidence of Rs. 200,000 claimed as interest on borrowed capital for house property.
• 5. Whether the Chief Commissioner of Income Tax (Appeals) erred in not providing sufficient opportunity to produce evidence of Rs. 1,50,000 claimed as deduction under section 80C.
• 6. Whether the impugned Assessment Order is arbitrary, illegal, bad in law and in violation of rudimentary principle of contemporary jurisprudence.

Judgment Outcome

Decided in favour of Assessee.

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