MOHAN THAKURDAS GURNANI,NAVI MUMBAI V. ITO CENTRAL CIRCLE 5(2), MUMBAI

ITA 529/MUM/2025

AI Insights

The appeals by Mohan Thakurdas Gurnani were against the orders of the Learned Commissioner of Income-tax (Appeals)-53, Mumbai, which were passed under section 250 of the Income Tax Act, 1961. The appeals pertained to the assessment years 2014-15 and 2015-16, challenging the penalties levied under section 271(1)(c) of the Act for alleged concealment of income. The main issues involved were the treatment of long-term capital gains and income from house property, which had been previously adjudicated and remanded by the ITAT Mumbai. The Tribunal decided to remit the penalty matters back to the Ld. AO for re-computation following the fresh adjudication of the quantum issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398461 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Other Referred Cases: ITA No. 713/Mum/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANNAVARAMKOSURI
• Keywords: Set aside; Capital Gains; Bogus
• Section: 143(3); 271(1)(c); 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORESHRI VKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER ITA No.529/Mum/2025 - A.Y. 2015-16 ITA No.530/Mum/2025 - A.Y. 2014-15 Mohan Thakurdas Gurnani Flat No.2101, Moraj Casa Grande, Plot Nop.57, Sector 17 Koperkhairne, Navi Mumbai- 400 709 PAN: AACPG8827D vs ITO, central Circle 5(2), Mumbai Room No.427, 4th Floor, Kautilya Bhavan, Bandra Kurla Complex, Bandra (East), Mumbi-400 057 APPELLANT RESPONDENT Assessee by : None Respondent by : Shri Annavaram Kosuri (SR DR) Date of hearing : 02/06/2025 Date of pronouncement : 03/06/2025 O R D E R Per Anikesh Banerjee (JM): Both the appeals of the assessee were filed against the ordersof the Learned Commissioner of Income-tax (Appeals)-53, Mumbai *in short, ‘Ld.CIT(A)+ passed under section 250 of the Income Tax Act, 1961 (in short, ‘the Act’) for the Assessment years 2014-15 ad 2015-16, date of orders28/11/2024. The impugned orders were emanated from the orders of the Ld. ACIT, CC-5(2), Mumbai (for 2 ITAs 529 & 530/Mum/2025 Mohan Thakurdas Gurnani brevity, ‘Ld.AO’) passed under section 271(1)(c) of the Act, date of order 02/03/2022, for A.Y. 2014-15 and dated 03/03/2022 for A.Y. 2015-16. 2. When the appeals were called for hearing, there was no representation on behalf of the assessee, nor was any adjournment petition filed. Upon reviewing the record, it is noted that the Ld. AR had appeared at the previous hearing and had accepted the date fixed for the present hearing. However, no one appeared on behalf of the assessee today. Considering the merits and quantum involved in the case, we have decided to proceed with the hearing ex parte with respect to the assessee, after hearing the Ld. DR. 3. Both appeals involve similar facts and a common issue. Hence, they are being disposed of by this common order, treating ITA No. 529/Mum/2025 for AY 2015– 16 as the lead case. 4. The assessment for A.Y. 2015–16 was completed under section 143(3) read with section 153A of the Act. Additions were made on account of bogus long-term capital gains amounting to Rs.31,04,85,020/- and income from house property amounting to Rs.5,62,807/-. These additions were challenged before the Ld. CIT(A), who dismissed the assessee's appeal. The matter was then brought before the Tribunal. On examining the order of the Co-ordinate Bench of the ITAT, Mumbai in ITA No. 713/Mum/2021 for A.Y. 2015–16, dated 17/11/2023, we observe that both issues—long-term capital gain and house property income— were adjudicated on merits.With respect to the exemption claimed under section 10(38) of the Act regarding long-term capital gains (LTCG), the Co-ordinate Bench 3 ITAs 529 & 530/Mum/2025 Mohan Thakurdas Gurnani set aside the issue to the file of the Ld. AO for fresh adjudication, as discussed in paragraph 62 of the said order. Similarly, the issue related to the annual rental value was also examined, and the Co-ordinate Bench directed that a 30% deduction under section 24 of the Act be allowed, as elaborated in paragraph 57 of the same order. Therefore, both issues were remanded to the Ld. AO for fresh consideration. 5. We note that the Ld. AO had initiated penalty proceedings and levied a penalty on the alleged concealment amounting to Rs.7,05,47,203/-. The assessee contended that since the quantum appeal was pending before the ITAT, the penalty should be kept in abeyance until its disposal. However, the Ld. CIT(A) dismissed the assessee’s appeal and upheld the penalty order. Since the quantum appeal has now been adjudicated and the matter has been remanded to the Ld. AO for fresh consideration, we also remit the penalty matter back to the Ld. AO for re-computation of the penalty in light of the merits of the case. Accordingly, ITA No. 529/Mum/2025 is allowed for statistical purposes. ITA No. 530/Mum/2025 (A.Y. 2014–15) 6. The facts and circumstances in this appeal are identical to those in the quantum appeal before the ITAT in ITA No. 709/Mum/2021. All material aspects remain the same as in A.Y. 2015–16. Therefore, the decision rendered in ITA No. 529/Mum/2025 is equally applicable to the present appeal mutatis mutandis. Consequently, ITA No. 530/Mum/2025 is also remanded to the file of the Ld. AO 4 ITAs 529 & 530/Mum/2025 Mohan Thakurdas Gurnani for re-computation of the penalty based on the merits of the case and is allowed for statistical purposes. 7. In the result, both the appeals in ITA Nos 529 & 530/Mum/2025 are allowed for statistical purpose. Order pronounced in the open court on 3rd day of June 2025. Sd/- sd/- (VIKRAM SINGH YADAV) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 03/06/2025 Pavanan Copy of the Order forwarded to: 1. अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्डफ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "