MAMTA MADHAVSHARAN AGRAWAL,AHMEDABAD V. THE ACIT, CIRCLE-2(1)(1), AHMEDABAD

ITA 1629/AHD/2025

AI Insights

This case involves an appeal by Mamta Madhavsharan Agrawal against the order of the CIT(A) which confirmed the denial of carry forward of a Long Term Capital Loss on the sale of shares. The primary contention was that the CIT(A) passed an ex-parte order without considering the appellant's adjournment request and without providing an effective opportunity of being heard, which was argued to be against the principles of natural justice. Additionally, the CIT(A) upheld the Assessing Officer's decision made under Section 154 of the Income-tax Act, 1961, which the appellant contested as being beyond the scope of 'mistake apparent from record' and related to a debatable issue. The Tribunal found that the assessee had not complied with previous opportunities to furnish necessary details and thus decided to set aside the CIT(A)'s order and remand the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827659 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 26-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Assessee Lawyers: MOHIT BALANI
• Keywords: Set aside; Difference of opinion; Change of opinion; Opportunity of being heard; Principle of natural justice
• Section: 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No. 1629/Ahd/2025 (Assessment Year: 2015-16) Mamta Madhavsharan Agrawal, Plot No. 10, Aarjav Co-op. Housing Society, Opp. Gulmohar Bungalows, Satellite Road, Ahmedabad-380015 [PAN : AAWPA 1275 D] Vs. Assistant Commissioner of Income-tax, Circle-2(1)(1), Ahmedabad (Appellant) .. (Respondent) Assessee by : Shri Mohit Balani, AR Revenue by: Shri Abhijit, Sr DR Date of Hearing 05.01.2026 Date of Pronouncement 07.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT : This appeal has been filed by the assessee against the order of the Ld. Addl/Jt. Commissioner of Income-tax (Appeals)-2, National Faceless Appeal Centre (NFAC), Gurugram (hereinafter referred to as \"CIT(A)\" for short) dated 25.06.2025, passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2015-16. 2. he assessee has raised the following grounds of appeal:- “1. That the learned CIT(A) erred in law and on facts in passing an ex-parte order without considering appellant's adjournment request and without providing an effective opportunity of being heard, which is against principles of natural justice. Printed from counselvise.com ITA No. 1629/Ahd/2025 Mamta Madhavsharan Agrawal Vs. ACIT Asst. Year : 2015-16 - 2– 2. The learned CIT(A) has erred in confirming the order passed u/s 154 of the Act, even though the same was beyond the scope of \"mistake apparent from record\" and related to a debatable issue. 3. That the learned CIT(A) erred in confirming the denial of carry forward of Long Term Capital Loss of Rs. 16,62,905/- on sale of shares of a private limited company on the erroneous presumption that the transaction was a buy-back covered by Section 10(34A), whereas the appellant had submitted documentary evidence (bank statement) showing sale proceeds were received from third parties, not the company. 4. The learned CIT(A) has erred in law in not appreciating that during the original assessment u/s 143(3), the AO had duly examined the claim of capital loss and accepted the same; therefore, re-characterization of the transaction in proceedings u/s 154 was nothing but a review/change of opinion which is impermissible in law. 5. The Learned CIT(A) erred in law and on facts by failing to consider that the order u/s. 154 is bad in law as the Ld. AO failed to pass a speaking order and merely stated that the assessee's reply was \"not found correct\" without assigning reasons or dealing with the evidences submitted.” 3. On perusal of the records, it is observed that the assessee was afforded several opportunities to furnish details, clarifications, and explanations in support her claim; however, despite being granted multiple opportunities, the assessee remained non-compliant and failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal ex parte. We also find that assessee even failed to submit substantial documents before the Assessing Officer. 4. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, all necessary details, clarifications, and explanations would be Printed from counselvise.com ITA No. 1629/Ahd/2025 Mamta Madhavsharan Agrawal Vs. ACIT Asst. Year : 2015-16 - 3– furnished before the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment. The assessee shall submit all the relevant details / statement / submission / supporting documents before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 5. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 07.01.2026 Sd/- Sd/- (T.R. SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 07/01/2026 **btk आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "