GULSHAN MOHD ARIF TASE,THANE vs. ITO WD 2(4), NAVI MUMBAI

This appeal by the assesseeis is directed against the order of Commissioner of Income Tax(Appeals)-1, Thane [in short 'the CIT(A)’] dated 28/02/2017 for the assessment year 2012-13.

This appeal was filed by the assessee on 04/05/2017. The appeal was first listed for hearing on 04/09/2018. The notice of hearing of the appeal was communicated to the assessee vide notice sent through RPAD on 13/08/2018 on the address mentioned in Form No.36. Despite repeated notices neither the assessee nor any Authorized Representative for the assessee ever appeared before the Tribunal. A perusal of the appeal file shows that the appeal was listed for effective hearing before the Bench 16 times, since 04/09/2018. It is relevant to mention here that the assessee has not even filed letter seeking adjournments on any of the dates fixed for hearing. It seems that the assessee is not keen to pursue his appeal before the Tribunal. Thus, we are constrained to take up this appeal for hearing on the basis of material available on record and with the assistance of ld. Departmental Representative.

Shri Hoshang B. Irani, representing the Department submitted that the Assessing Officer vide order dated 31/03/2015 had made addition of Rs.2,54,24,000/- under the head ‘Capital Gains’. The Assessing Officer had also disallowed assessee’s claim of deduction u/s. 54B and 54F of the Income Tax Act, 1961 ( in short ‘the Act’). The CIT(A) upheld the assessment order as the assessee had failed to substantiate that the property sold was agricultural property and also that the assessee is eligible for claiming exemption u/s. 54B and 54F of the Act. The ld. Departmental Representative prayed for dismissing appeal of the assessee and upholding the impugned order.

We have heard the submissions made by ld. Departmental Representative and have examined the orders of authorities below. The assessee has sold the property/land situated at Mauje Kasha, S.No.13/1 admeasuring 4670 sq. metres. The assessee had sold the afore said property to M/s. Sai Raj Developers Ltd. for a consideration of Rs.3,85,24,500/- on 25/11/2011. The assessee had purportedly invested the sale proceeds for purchase of agricultural land and claimed exemption of Rs.2,12,52,580/- u/s. 54B. The assessee also made investment in residential house and claimed exemption u/s. 54F of the Act Rs. 1,03,59,110/-. The claim made by the assessee in respect of exemption claimed u/s.54B and 54F were not found tenable by the Assessing Officer. The Assessing Officer made addition to the extent of capital gains earned on sale of capital asset i.e. Rs. 2,54,24,000/-. The assessee assailed the addition in appeal before CIT(A). The CIT(A) upheld the findings of the Assessing Officer, hence, the present appeal. No material is brought on record by the assessee to controvert the findings of CIT(A), hence, we do not find any reason to reverse the findings of CIT(A).

In the result, impugned order is upheld and appeal by the assessee is dismissed.