The Assistant Commissioner of Income Tax v. Lokesh Chandra

Parties Involved

Facts Summary

The case involves an appeal by the Assistant Commissioner of Income Tax against an assessment order issued by the Assessing Officer. The assessee, Lokesh Chandra, filed a cross-objection challenging the assessment order. The primary issue is whether the assessment order was validly issued in accordance with the mandatory procedure under section 144B of the Income Tax Act, 1961. The assessee argued that the Assessing Officer made additions in the assessment order without issuing a proper show cause notice and without following the faceless assessment procedure, thereby violating principles of natural justice. The Tribunal examined the show cause notice and the final assessment order to determine if the procedural requirements were met.…

Legal Issues

• 1. Validity of assessment order - bad in law and on facts
• 2. Additions beyond the scope of show cause notice and violation of faceless assessment procedure
• 3. Disallowance of Rs.34,34,360/- u/s.40(a)(ia) for non-deduction of TDS u/s 194Q
• 4. Addition of Rs.3,27,00,247/- u/s 68 on account of unsecured loans
• 5. Addition of Rs.84,31,367/- on account of provisions treated as unexplained cash credit u/s 68

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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