MUHAMMAD SHAKEEL TANWAR ,MUMBAI V. INCOME TAX OFFICER 41(4)(1), MUMBAI

ITA 3304/MUM/2024

AI Insights

This case involves an appeal by Mr. Muhammad Shakeel Tanwar against the order of the National Faceless Appeal Center (NFAC)/Commissioner of Income Tax (Appeals), which affirmed the disallowance of an exemption claim under section 54F of the Income Tax Act, 1961. The Assessing Officer had earlier disallowed the claim of exemption of Rs.49,16,630 and added it as deemed capital gains to the income of the Assessee for the Assessment Year 2010-11. The Commissioner dismissed the appeal due to the Assessee's non-responsiveness to multiple hearing notices. The Income Tax Appellate Tribunal (ITAT) found that the Commissioner decided the appeal in limine without addressing the merits and thus remanded the case for a substantive decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33724 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 08-10-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 25-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNNY KACHHWAHA
• Assessee Lawyers: ANGEL MORE; VIRTUALLY APPEARED
• Keywords: Capital Gains
• Section: 143(3); 250; 54F

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA No.3304/M/2024 Assessment Year: 2010-11 Mr. Muhammad Shakeel Tanwar 901/ A-Wing G N Tower, Chunawala Compound, Opp Andheri Subway, Andheri West, Mumbai - 400058 PAN: AAAPT9816B Vs. Income Tax Officer 41(4)(1) Erstwhile ITO 24(1)(1), Room No. 623, Kautalya Bhavan, Bandra Kurla Complex, Bandra (E) Mumbai - 400051 (Appellant) (Respondent) Present for: Assessee by : Ms. Angel More, (Virtually appeared) Revenue by : Shri Sunny Kachhwaha, Sr D.R Date of Hearing : 08.10.2024 Date of Pronouncement : 23.10.2024 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 30.04.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2010-11. ITA No.3304/M/2024 Mr. Muhammad Shakeel Tanwar 2 2. In the instant case, the Assessing Officer (AO) vide assessment order dated 28.03.2013 u/s 143(3) of the Act has disallowed the claim of exemption of Rs.49,16,630/- as claimed u/s 54F of the Act and added the same as deemed capital gains in the income of the Assessee. 3. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner, who vide impugned order affirmed the aforesaid addition and dismissed the appeal by holding that the Assessee has not responded to the multiple opportunities being granted by way of issue of hearing notices and from the non-responding conduct of the Assessee, it may be concluded that he is not interested in completing the appeal proceeding. Considering the records and merits of the case he is left with no option but to dismiss the appeal. 4. We have given thoughtful considerations to the peculiar facts and circumstances of the case. From the impugned order, it nowhere appears that on which dates the Ld. Commissioner has issued any notices for the dates of hearing to the Assessee. Even otherwise the Ld. Commissioner decided the appeal of the Assessee in limine but not on merits. Hence, for the just decision of the case and for substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision on merits, suffice to say by affording reasonable opportunity of bearing heard to the Assessee. The Assessee is also directed to comply with the notices and to file the relevant details/documents as would be required by the Ld. Commissioner for proper and just decision of the case. In case of default, the Assessee shall not be entitled for any leniency. ITA No.3304/M/2024 Mr. Muhammad Shakeel Tanwar 3 5. In the result, the appeal filed by the Assessee is allowed for statistical purposes. Order pronounced in the open court on 23.10.2024. Sd/- Sd/- (OMKARESHWAR CHIDARA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "