DEEPAK KUMAR DOSHI,MUMBAI V. ITO WARD 42(1)(2), MUMBAI, MUMBAI

ITA 4879/MUM/2024

AI Insights

The case involves an appeal by Deepak Kumar Doshi against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi, which confirmed an addition of Rs. 57,20,450 to the appellant's income under section 56(2)(x) of the Income Tax Act, 1961. This addition was based on the difference between the stamp duty value and the purchase value of a flat purchased by the appellant. The Income Tax Officer had assessed this difference as income from other sources. The appellate authority initially did not receive adequate compliance or evidence from the appellant, leading to a decision without a substantive hearing. The Tribunal found that the CIT(A) had not properly adjudicated the issues and thus remanded the case for a thorough re-examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473332 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 21-09-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: VARSHA BHOMRAJ BHATTER
• Keywords: Set aside; Opportunity of being heard; Sale consideration of property below Jantri Value; Principle of natural justice
• Section: 143(3)

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA 4879/MUM/2024 (A.Y. 2018-19) Deepak Kumar Doshi, 603, Mayfair Greens, SV Road, Near Poisar Depo., Kandivali West, Mumbai 400 067, Maharashtra v/s. बनाम Income Tax Officer, Ward – 42(1)(2), Kautilya Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai 400051, Maharashtra स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No: AIVPD3072G Appellant/अपीलार्थी .. Respondent/प्रतिवादी Appellant by : Ms. Varsha Bhomraj Bhatter Respondent by : Shri R. R. Makwana (Sr. DR) Date of Hearing 11.11.2024 Date of Pronouncement 14.11.2024 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- The present appeal arising from the appellate order dated 05.08.2024 is filed by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 143(3) of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 27.01.2021 as passed by the Income Tax Officer, Ward-42(1)(2), Mumbai for the Assessment Year [A.Y.] 2018-19. P a g e | 2 ITA No. 4879/Mum/2024 A.Y. 2018-19 Deepak Kumar Doshi 2. The grounds of appeal are as under: (a) In the facts and circumstances of the case and in law, the learned A.O. [FAO] erred in making an addition of Rs. 57,20,450/- to the other income of the appellant under section 56(2)(x) of the Act, without appreciating the facts and explanations provided by the appellant. (b) In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax(A), NFAC also erred in confirming the same. 3. Factual matrix borne from the record shows that the assessee purchased a flat during the year. However, it was noted that the stamp duty value of flat purchased was Rs. 1,60,55,000/- whereas the assessee had shown the purchase value at Rs. 1,03,34,550/-. The difference of Rs. 57,20,450/- between the stamp duty value and purchase value was brought to tax income from other sources w/s 56(2)(x) of the Income Tax Act, 1961. 4. As per the appellate order, during the appellate proceedings, the assessee had submitted only „Statement of Facts‟. After that neither he replied to hearing notices nor submitted any documentary evidence/information to prove his side. Sufficient and adequate opportunities were afforded to the appellant as indicated in table at page no 2. No reply whatsoever was submitted by the appellant. P a g e | 3 ITA No. 4879/Mum/2024 A.Y. 2018-19 Deepak Kumar Doshi 5. We have carefully considered all the relevant aspects of the case, non-compliance of the assessee and the conclusions drawn by the lower authorities. It is apparent from the records that in the present case, no substantive hearing could take place owning to non-compliance on part of the assessee. Moreover, the Ld. CIT(A) has not adjudicated at length on the issues involved without making an independent analysis of the case himself. It is in the fitness of things to allow one last opportunity of hearing to the assessee to explain the matter before lower authorities in the interests of justice and fair-play. We find in quite a few cases that there is some degree of lack of proper communication wherever notices are sent through e-portal. Besides, we hold that as per the provisions of Section 250(6) of the 1961 Act, Ld. CIT(A) is obligated to state points for determination in appeal before him, the decision thereon and the reasons for determination. He has no power to dismiss appeal of assessee on account of non- prosecution and without deciding on the merits of the case. 6. During the hearing, the Bench proposed for restoration of the matter to the Ld. CIT(A) for a de novo consideration. The Revenue did not oppose this plea. Thus, in the interest of justice, we deemed it appropriate to allow the appeal for statistical purposes P a g e | 4 ITA No. 4879/Mum/2024 A.Y. 2018-19 Deepak Kumar Doshi emphasizing the need for a thorough and compliant adjudication process. The Ld. CIT(A) shall give proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in the set aside remand proceedings for de novo adjudication of the appeal of the assessee filed before him. Needless to state that the assessee will comply with notices and any details sought by the appellate authority. 8. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 14/11/2024. Sd/- Sd/- BEENA PILLAI PRABHASH SHANKAR (न्याययक सदस्य /JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai ददनाुंक /Date 14.11.2024 Lubhna Shaikh / Steno आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. P a g e | 5 ITA No. 4879/Mum/2024 A.Y. 2018-19 Deepak Kumar Doshi सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अयधकरण/ ITAT, Bench, Mumbai. "