SHRI RAVI RAMAKRISHNAN, MUMBAI V. INTERNATIONAL TAX WARD 4(1)(1), MUMBAI

ITA 646/MUM/2023

AI Insights

This case involves an appeal by the assessee, Ravi Ramakrishnan, against the assessment order passed under sections 147 and 144C(13) of the Income Tax Act, 1961 for the assessment year 2014-15. The primary contention revolves around the alleged failure of the DRP to consider the assessee's submissions and provide an opportunity of being heard, as well as the incorrect application of section 56(2)(vii)(b) of the Act. The assessee had filed a rectification application with the DRP, which was pending at the time of the appeal. The Income Tax Appellate Tribunal (ITAT) decided to allow the appeal for statistical purposes and directed the DRP to expedite the decision on the rectification application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133767 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: I
• Next Hearing Date: 25-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 02-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANUSHREE GUPTA
• Keywords: Opportunity of being heard; Capital Gains
• Section: 147; 56(2)(vii)(b); 49(4); 49(4); 13

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “आई ”, मुंबई पीठ 炈ी िवकास अव瀡थी, 瀈याियक सद瀡य एवं 炈ी गगन गोयल, लेखाकार सद瀡य के सम楹 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “I ”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER आअसं.646/मुं/2023 (िन.व.2014-15) ITA NO. 646/MUM/2023(A.Y. 2014-15) Ravi Ramakrishnan, 205/404, Khar Rose Minar Building, 4 th Floor, 10 th Road, Khar (West, Mumbai 400 052 PAN: ANWPR-2793-J ...... अपीलाथ牸 /Appellant बनाम Vs. International Tax Ward 4(1)(1), Room No.1729, 17 th Floor, Air India Building, Nariman Point, Mumbai – 400 021. ..... 灹ितवादी /Respondent अपीलाथ牸 獧ारा/ Appellant by : Ms. Anushree Gupta 灹ितवादी 獧ारा/Respondent by : Shri Anil Sant सुनवाई क琉 ितिथ/ Date of hearing : 26/09/2023 घोषणा क琉 ितिथ/ Date of pronouncement : 26/09/2023 आदेश आदेशआदेश आदेश/ ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the assessment order dated 10/01/2023 passed u/s. 147 r.w.s. 144C(13) of the Income Tax Act, 1961 [ in short ‘the Act], for assessment year 2014-15. 2. The assessee has raised following grounds in appeal: “ The following grounds are independent of and without prejudice to one another: 1. On the facts and circumstances of the case and in the law, the final assessment order passed by the Learned Assessing Officer ('Ld. AO') under section 147 r.w.s. 144C(13) / Directions passed by the Hon'ble Dispute Resolution Panel ('DRP') under 2 ITA NO. 646/MUM/2023(A.Y. 2014-15) section 144C(5) of the Income-tax Act, 1961 ('the Act 1 ) is bad, both in the eye of law and on the facts on account of: (i) The Hon'ble DRP has erred in completely ignoring and not considering the Appellants submissions made via email dated 7 December 2022, 10 December 2022, and 13 December 2022. (ii) The Hon'ble DRP has erred in not providing an opportunity of being heard. 2. On the facts and circumstances of the case and in law, the Hon'ble DRP has erred in confirming the variation proposed by the Ld. AO amounting to Rs.45,62,270 under section 56(2)(vii)(b) of the Act as income from other sources and has also erred in invoking the amended provisions of section 56(2)(vii)(b)(ii) of the Act for years prior to AY 2014-15. 3. On the facts and circumstances of the case and in law, the Hon'ble DRP has grossly erred in completely ignoring and not considering the submissions made via email dated 13 December, 2022 wherein the Appellant had submitted the write up for granting corresponding relief in capital gains computation as per section 49(4) of the Act along with relevant case laws. 4. On the facts and circumstances of the case and in law, the Appellant has filed a rectification application dated 26 December 2022 before the Hon'ble DRP on account of Appellants submissions not being considered in the DRP Directions and not providing opportunity of being heard. 5. The Appellant craves leave to add, to amend, to alter, to withdraw, to modify and / or to substitute any or all the foregoing grounds of appeal and to submit such statements, documents and papers as may be considered necessary either at or before the appeal hearing.” 3. Ms. Anushree Gupta appearing on behalf of the assessee submitted at the outset that the assessee has filed an application before the Dispute Resolution Panel(DRP) under Rule 13 of Income Tax (Dispute Resolution Panel) Rules, 2009 for rectification of the Directions on 23/12/2022. If the aforesaid application is allowed, the present appeal of the assessee would become infructuous. The ld.Authorized Representative of the assessee furnished copy of the said application and prayed that the DRP may be directed to decide rectification application of the assessee. 4. We have heard the submissions made by both side. The assessee has placed on record copy of application dated 23/12/2022 filed under Rule 13 of 3 ITA NO. 646/MUM/2023(A.Y. 2014-15) Income Tax (Dispute Resolution Panel) Rules, 2009 for rectification of DRP directions. We deem it appropriate to dispose of the appeal with a direction to the DRP to decide the aforesaid application, in accordance with law. The DRP shall decide the said application expeditiously, preferably within a period of six months from the date of receipt of this order. The appeal of the assessee is allowed for statistical purpose in the terms aforesaid directions. Order pronounced in the open court on Tuesday the 26 th day of September, 2023. Sd/- Sd/- (GAGAN GOYAL) (VIKAS AWASTHY) लेखाकार सद瀡य/ACCOUNTANT MEMBER 瀈याियक सद瀡य/JUDICIAL MEMBER मुंबई/ Mumbai, 琈दनांक/Dated 26/09/2023 Vm, Sr. PS(O/S) 灹ितिलिप 灹ितिलिप灹ितिलिप 灹ितिलिप अ灡ेिषत अ灡ेिषतअ灡ेिषत अ灡ेिषतCopy of the Order forwarded to : 1. अपीलाथ牸/The Appellant , 2. 灹ितवादी/ The Respondent. 3. The PCIT 4.. िवभागीय 灹ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाड榁 फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar), ITAT, Mumbai