SYED FARAZ SHERE,GAUTAM BUDH NAGAR V. CIT (APPEALS), NOIDA UTTAR PRADESH

ITA 4151/DEL/2025

AI Insights

The case involves Shri Syed Faraz Shere, who appealed against the order of the National Faceless Appeal Centre (NFAC) and the Income Tax Officer (ITO), which pertained to the assessment year 2011-12. The dispute centered on the alleged capital gains tax on a gifted agricultural property valued at Rs. 86,07,707, which was actually gifted by the assessee's mother, Mrs. Jahanara Shere, and not by the assessee himself. The assessee, holding a Power of Attorney, executed the gift deed but was incorrectly assessed for capital gains. The Tribunal found that the assessee had not initially provided sufficient documentary evidence to substantiate his claim, leading to the remittance of the case back to the CIT(A) for a thorough re-examination with the opportunity for the assessee to present additional evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792519 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 29-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Gift
• Section: 147

Judgement Text

"1 ITA No. 4151/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND Ms. MADHUMITA ROY, JUDICIAL MEMBER ITA No. 4151/DEL/2025 Assessment Year: 2011-12 Shri Syed Faraz Shere, A-25, Sector-34, Noida. PAN: ASJPS 5840 F Vs Income Tax Officer, Ward-3(5), Noida. APPELLANT RESPONDENT Assessee represented by Advocate Aakash Department represented by Sh. Manish Gupta, Sr. DR Date of hearing 04.12.2025 Date of pronouncement 04.12.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal, filed by the assessee, is directed against the order dated 02.05.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1075997820(1) passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 26.11.2018 passed by the ITO, Ward-3(5),Noida, under Section 147 r.w.s. Printed from counselvise.com 2 ITA No. 4151/Del/2025 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for Assessment Year 2011-12. 2. Grounds of appeal raised by the assessee read as under: “During FY 2010-2011, a portion of our ancestral property, about 0.2810 Hectare of Agriculture Land, situated at Mohammadpur, on Faizabad Road, Uttar Pradesh, owned by my mother Mrs. Jahanara Shere, which had a market value of Rs. 86,07,707/-, was gifted to my brothers and a sister (real sons and a daughter of my mother) through registered Gift Deed, on 11/05/2010. Due to old age and poor health condition of my mother, she gave me the Power of Attorney, to sign & execute the relevant property gift deeds, on her behalf, in the office of Registrar of Properties, Barabanki, Uttar Pradesh. But due to some oversight I was being asked to pay capital gain on this gifted property, when I never gifted any property to anyone in FY 10-11 of Rs. 86,07,707/-. Since, I could not furnish the relevant Gift deed/ property gift papers before the Learned Assessing Officer ITO, Ward 3(5) Noida, and later-on before CIT (Appeals) Noida, I could not prove to them that NO property of Rs. 86,07,707/ was sold by me during FY 10-11, and therefore there does not arise any case of escaping any Income and resultant Income Tax on the same. But I am now in possession of relevant gift deed papers, of gifting of agriculture land worth Rs. 86,07,707/- which was infact gifted by my mother, to my brothers and sisters, and I only executed that gift deed, holding POA on behalf of my mother. In light of the fact that the enclosed Gift deed copy, prove it beyond any doubt, that the agricultural land of Rs. 86,07,707/- was actually gifted by my mother, and not me. I, therefore, request for COMPLETE REVERSAL of the Order Passed by the CIT (Appeal) Noida, u/s 147 read with Section 144, for AY 2011-2012, for Addition of Income of Rs. 60,25,395/- and request for complete waiver of additional Tax demanded of Rs. 34,07,325/-, vide demand notice u/s 156, imposed on me. Excerpts of Property Gift Deed are attached with this Reply dated 11/05/2010 Printed from counselvise.com 3 ITA No. 4151/Del/2025 Entire set of Gift deed is not enclosed, since only 1MB data can be attached.” 3. Learned DR at the outset submitted that the assessee did not file appropriate documentary evidences such as bank accounts, sale-deed and purchase-deed in respect of the transaction in question in regard to the immovable property during the year and therefore, the addition made by the Learned Assessing Officer was further confirmed by the Learned First Appellate Authority. 4. In fact the Learned AR conceded to such facts pointed out by the Learned DR. He, therefore, prayed for setting aside the issue to the file of the Learned First Appellate Authority for fresh adjudication of the matter by granting an opportunity of being heard to represent his case effectively by adducing supportive evidences before him in respect of the case made out. 5. Having heard the Learned representatives of the respective parties and having regard to the facts and circumstances of the matter we are of the considered opinion that in order to avoid miscarriage of justice the matter requires to be remitted back to the file of Ld. CIT(A) for fresh consideration of the issue by granting an opportunity of being heard to the assessee and considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the Printed from counselvise.com 4 ITA No. 4151/Del/2025 assessee does not cooperate with the Ld. CIT(A), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly. 7. In the result, assessee’s appeal is allowed for statistical purposes. Order pronounced in open court on 04.12.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (Ms. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 08.12.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "