Income Tax Department functioning like colonial times under a foreign rule: ITAT

While giving Judgement in matter of Smt. Nagina Kochar vs The PCIT Income Tax Appellate Tribunal (ITAT) said that the assessee’s time cannot be taken for granted as the assessee appearing before the tax authorities cannot be made to run around appearing again and again to justify the claim which anyway was allowable and has been allowed in the first round by the AO. The Authorities functioning under the Income Tax Act as Government Authorities are performing State functions for the benefit of the citizens. They no longer can continue to work with the mind set of administering the law applicable to colonials. This style of functioning may have been prevalent unquestioningly during colonial times under a foreign rule, however, it is no longer acceptable in the preset times.

In the facts of the present case, the assessee returned an income of Rs. 19,44,840 /- in the return filed on 22.07.2016 . Subsequently, the assessee filed a Revised return on 27.10.2016 declaring an income of Rs. 29,55,280/-. The case of the assessee was selected for a limited scrutiny through CASS for the following reason :

“(i) Large deduction claimed u/s 54B, 54C, 54D, 54G, 54GA (Schedule CG of ITR )”

The AO as per the cryptic order passed records that notice was issued to the assessee u/ s 143 ( 2 ) alongwith further notice u/ s 142 ( 1 ) alongwith questionnaire through I TBA. The AO accepted thereafter the returned income which consisted of her income from salary, rental income, capital gain and ” income from other sources”. This order dated 26.11.2018 was set aside by the ld. PCI T after show causing the assessee and considering the reply filed. Aggrieved by this, the assessee is in appeal before the ITAT.

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