SAFATULLAH JALAL,CHENNAI V. INCOME TAX OFFICER, NON CORP WARD 9(1) CHE/, CHENNAI

ITA 471/CHNY/2026

AI Insights

The case involves an appeal by Safatullah Jalal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2016-17. The primary issues in the appeal were the legal challenge to the initiation of reassessment proceedings under section 147 of the Income Tax Act, 1961, and the confirmation of addition made by the Assessing Officer regarding short term capital gains from Futures/Options Derivatives transactions. The Assessing Officer had added a sum of ₹28,49,905 to the total income of the assessee, which was contested in the appeal. The CIT(A) dismissed the appeal due to non-submission of written submissions or evidence by the assessee. The Tribunal found merit in remanding the matter back to the CIT(A) for a detailed examination of the legal and factual aspects.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847372 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Chennai
• Assessment Year: 2016-2017
• Appeal Filed On: 29-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V SREENIVASAN
• Assessee Lawyers: A. PAUL SUNDAR RAJ
• Keywords: Reassessment proceedings; Capital Gains
• Section: 147; 148

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी इंट ूरी रामाराव, लेखा सद˟ एवं ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ । Before Shri Inturi Rama Rao, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.471/Chny/2026 िनधाŊरण वषŊ/Assessment Year: 2016-17 Safatullah Jalal, Flat No. 13, No. 106/107, Perambur Barracks Road, Chennai 600 007. [PAN: AIVPJ4013B] Vs. The Income Tax Officer, Non Corporate Ward 9(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri A. Paul Sundar Raj, CA ŮȑथŎ की ओर से/Respondent by : Shri AR V Sreenivasan, CIT सुनवाई की तारीख/ Date of hearing : 16.03.2026 घोषणा की तारीख /Date of Pronouncement : 24.03.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 12.11.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2016-17. 2. Besides challenging legal issue of initiation of reassessment proceedings under section 147 of the Income Tax Act, 1961 [“Act” in Printed from counselvise.com I.T.A. No.471/Chny/26 2 short], the assessee also challenged confirmation of addition made by the Assessing Officer. 3. At the outset, it is noted that admittedly, the Assessing Officer made addition to an extent of ₹.28,49,905/- on account of variation in respect of the issue of short term capital gains out of transactions in Futures/Options Derivatives, which was added to the total income of the assessee vide assessment order dated 24.03.2024 under section 147 r.w.s. 144B of the Income Tax Act, 1961 [“Act” in short]. Before the ld. CIT(A), it is noted vide para 8 of the impugned order, the ld. CIT(A) dismissed the appeal of the assessee for non-submission of any written submissions or evidence in support of the grounds of appeal. 4. The ld. AR Shri A. Paul Sundar Raj, CA raised a legal ground that the notice under section 148 of the Act is barred by limitation, but, however, considering the findings of the ld. CIT(A) vide para 8 of the impugned order, we deem it proper to remand the matter to the file of the ld. CIT(A) for his fresh consideration with a liberty to the assessee to raise ground as entitled under law. The assessee is also directed to furnish all the details before the ld. CIT(A) for his consideration as was Printed from counselvise.com I.T.A. No.471/Chny/26 3 furnished before this Tribunal. Thus, the grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 24th March, 2026 at Chennai. Sd/- Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 24.03.2026 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "