Facts of the Case:

The appeal concerns the assessment for the year 2011-12 of Sh. Teekam Singh against the Income Tax Officer (ITO), Ward-5(2)(4), Noida, with respect to proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961. The appellant, who was in jail for nearly 12 years prior to his release on April 23, 2024, had been unable to explain his source of investment amounting to Rs. 25 lakhs plus stamp duty during earlier proceedings. He submitted his bank statement showing a receipt of Rs. 25.86 lakhs as land acquisition compensation, dated January 31, 2009.

Issues Involved:

  • Whether the appellant could be held responsible for non-cooperation during the tax proceedings due to his imprisonment.
  • Whether the evidence provided by the appellant, such as the bank statement, should be accepted in the absence of earlier submission to the Assessing Officer or CIT(A).
  • Whether the appeal could be remanded for fresh adjudication in the interest of justice.

Petitioner’s Arguments:

  • The appellant was unable to cooperate in the proceedings due to his long imprisonment.
  • He submitted his bank statement showing Rs. 25.86 lakhs received as compensation for land acquisition, which he claims is the source of investment.

Respondent’s Arguments:

  • The departmental representative argued that the appellant did not provide the necessary evidence either to the Assessing Officer or the CIT(A) in the previous proceedings, and that the appellant's non-cooperation should be taken into account.

Court Order / Findings:

The ITAT, Delhi Bench, in light of the appellant’s prolonged incarceration and the submission of his bank statement, has decided to remand the case back to the Assessing Officer for a fresh review. The Assessing Officer is directed to provide the appellant three effective opportunities for representation. The appeal is allowed for statistical purposes.

Important Clarification:

  • The case highlights the importance of considering the appellant's circumstances when determining non-cooperation and the adequacy of evidence submission.
  • The appeal was restored to ensure fairness and the opportunity for proper adjudication in the larger interest of justice.

Section Involved:

  • Section 147 (Reassessment)
  • Section 144 (Best Judgment Assessment)

    Link to download the order -  Teekam Singh vs. Income Tax Officer - ITA No. 3862/Del/2024, 31st December 2024

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