SANDEEP DUGGAL VS. ASSESSMENT UNIT

Parties Involved

Facts Summary

The assessee’s case was selected for scrutiny for cash deposits during the demonetization period. The assessee is engaged in the service sector of Real Estates Agency. The notice u/s. 148 dated 17.7.2022 was issued and duly served upon the assessee. However, the assessee has not filed his return of income in response to notice u/s. 148. The case was assigned to ReFAC under the FAS, 2019. The notice u/s. 142(1) was issued on 05.01.2023, in compliance the assessee submitted his response and sought adjournment only. AO further noted in the assessment order, the details were sought, but assessee failed to respond. A sum of Rs. 10,34,000/- deposited in cash in the bank account was added to the total income of the assessee by the AO. Against the above, assessee preferred an appeal before the Ld. CIT(A). Ld. CIT(A) noted that there is a delay of 17 days in filing the appeal and the reasonable cause for delay was attributed to the ailment of the mother of the assessee’s counsel. However, Ld. CIT(A) was not satisfied, he dismissed the appeal in limine.…

Legal Issues

• 1. Whether the learned officer has grossly erred both in law and facts by completing the assessment arbitrarily based on hypothecation and unverified transactions and information contrary to the letter and spirit of section 147 & 143(3) of the income tax act.
• 2. Whether the Show Cause Notice issued u/s 147 of the Income Tax Act,1961 was served at the wrong e-mail address.
• 3. Whether the Show Cause Notice is bad at law as it only gave the Appellant 3 days’ time to submit a response as opposed to 14 days’ time according to the provisions of the Income Tax Act, 1961.
• 4. Whether the Notice for Penalty under section 274 read with section 271AAC(1) of the Income-tax Act,1961 was issued to the Appellant on 11/04/2023 without prior serving of Assessment Order and Demand Notice.
• 5. Whether the delay of 17 days in filing the appeal before the Ld. CIT(A) should be condoned.

Judgment Outcome

Decided in favour of Assessee.

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