NAVIN VANVIR SHAH,MUMBAI V. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

ITA 5358/MUM/2024

AI Insights

The case involves an appeal by Navin Vanvir Shah against an order from the National Faceless Assessment Centre (NFAC), Delhi, which confirmed an addition of Rs.67,32,600 as income from other sources under section 56[2][x] of the Income Tax Act, 1961. The appellant contested the order as excessive, unreasonable, and arbitrary, claiming it violated principles of natural justice and the provisions of the Income Tax Act. The tribunal noted that the decision was made without a substantive hearing on the merits, as the assessee had not responded to the subsequent notices due to their close issuance dates. Consequently, the tribunal remitted the case back to the Ld.CIT(A)/NFAC for a detailed decision on merits, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33698 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 11-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUJATHA IYANGAR
• Assessee Lawyers: SATYAPRAKASH SINGH
• Keywords: Opportunity of being heard; Sale consideration of property below Jantri Value; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SMT BEENA PILLAI, JUDICIAL MEMBER AND SHRI RENU JAUHRI, ACCOUNTANT MEMBER ITA No.5358/M/2024 Assessment Year: 2018-19 Navin Vanvir Shah Flat No. 61, 6th Floor, Prabha Mandir Chs. Ltd., P. Balu Marg, Prabha Nagar, Mumbai- 400025. PAN: AACPS7376M Vs. Assessment Unit, National Faceless Assessment Centre, Delhi.- 110001. (Appellant) (Respondent) Present for: Assessee by : Shri Satyaprakash Singh Revenue by : Shri Sujatha Iyangar, SR. A.R. Date of Hearing : 21.11.2024 Date of Pronouncement : 22.11.2024 O R D E R Per Beena Pillai, JM: Present appeal is filed by the assessee against order dated 26/08/2024 passed by NFAC Delhi/Ld.CIT(A) for Assessment Year 2018-19 on following grounds of appeal: ITA No.5358/MUM/2024 Navin Vanvir Shah; A. Y.2018-19 Page | 2 1. “The order dated 26/08/2024 bearing No. ITBA/NFAC/S/250/2024- 25/1067982425[1] passed by the Hon'ble CIT[A], NFAC, Delhi, is excessive, unreasonable, arbitrary, against the natural justice, against the provision of Income Tax Act, 1961 and therefore liable to be quashed. 2. On facts and circumstances of the case and in law, the Hon'ble C.I.T. (A) has erred in confirming the addition of Rs.67,32,600/- on account of difference between Agreement Value and Stamp Duty Value as Income From Other Source under section 56[2][x] of Income Tax Act, 1961. 3. The appellant craves to alter, add, delete, substitute, or modify and other grounds of appeal.” [ Brief facts of the case are as under: 3. At the outset, the Ld.AR submitted that three notices were issued to the assessee as narrated in para 4 of the impugned order. It is submitted that in respect of the first notice, assessee has filed a request for adjournment. However, in respect of the subsequent two notices which was issued within a gap of 14 days, assessee could not respond and immediately on 26/08/2024 the impugned order has been passed. The Ld.AR pleaded for one more opportunity to represent his case before the Ld.CIT(A). 4. The Ld.DR though objected to the same could not controvert that the decision appeal has not been decided on merit of the case and has been dismissed for non prosecution. We have perused the submissions advanced by both sides in the light of the records placed before us. 5. Considering the submissions made by both sides and the observation herein above in the interest of justice we remit the appeal back to the Ld.CIT(A)/NFAC to decide the issue raised by the ITA No.5358/MUM/2024 Navin Vanvir Shah; A. Y.2018-19 Page | 3 assessee by passing a detailed order on merits. Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly the grounds raised by the assessee stands allowed. In the result the appeal filed by the assessee stands allowed. Order pronounced in the open court on 22-11-2024. Sd/- Sd/- RENU JAUHRI BEENA PILLAI JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 22.11.2024. Snehal C. Ayare, Stenographer Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT //True Copy// BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai "