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Facts
The assessee appealed against an order upholding additions made to his income for salary, other sources, and unexplained investment. The lower authorities accepted the assessee as an ex-serviceman who drew salary income.
Held
The Tribunal found no merit in the additions as the source of funds was likely the salary. The lower authorities failed to examine the assessee's complete emoluments and TDS credit before making additions.
Key Issues
Whether the lower authorities erred in making additions to income without properly examining the assessee's salary emoluments and TDS credit.
Sections Cited
147, 144, 69
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2019-20 Sukhpal Singh, Vs Income Tax Officer, S/o Chhote Lal, Vill. Matora, Post- Ward-1(2)(5), Mawana, Meerut-250401 Meerut-250001 (APPELLANT) (RESPONDENT) PAN No. ABJPY4543L Assessee by: Self Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 27.05.2025 Date of Pronouncement: 27.05.2025 ORDER
This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1072708691(1) dated 30.01.2025, in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “the Act”).
Heard the assessee as well as the department. Case file perused.
It emerges at the outset that both the learned lower authorities have assessed the assessee for his salary of Rs.26,28,736/-, income from other sources of Rs.10,628/- and section 69 unexplained investment of Rs.12,000/-, respectively, in the course of assessment framed on 29.01.2024 and upheld in the lower appellate discussion.
Sukhpal Singh 4. This being the clinching factual position and once both the learned lower authorities have accepted the assessee; an ex- serviceman, to have drawn salary income, no merit is found in both the latter additions as it could be very well concluded that the source thereof is from the above salary amount only. The facts also remains that both the learned lower authorities have neither examined the assessee’s complete list of emoluments admissible as an ex-serviceman nor any TDS credit has been given, before assessing his entire salary amount. It is thus deemed appropriate in the larger interest of justice to restore the assessee’s instant case back to the learned assessing authority for it’s afresh appropriate computation as per law after verification of all the relevant facts. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 27/05/2025.