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Facts
The assessee, an NRI, appealed an assessment order, primarily concerning the sources of a loan that could not be substantiated to the Assessing Officer. The Dispute Resolution Panel (DRP) rejected the assessee's application under Section 144C due to a one-day delay in filing the objection.
Held
The Tribunal noted the need for a fresh examination of the matter. Therefore, it remanded the case back to the Assessing Officer to initiate assessment proceedings de-novo, allowing the assessee a proper opportunity to present the necessary details.
Key Issues
Whether the DRP erred in rejecting the application under Section 144C due to a one-day delay, and the correctness of additions made under Section 69A, LTCG without cost deduction, and initiation of penalty proceedings.
Sections Cited
144C(1), 69A, 271AAC(1), 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: DR.BRR KUMAR & SHRI TR SENTHIL KUMAR
Ghanshyam Pragjibhai Nakrani, Vs. The Income Tax Officer, 37, Malabar Hill Bunglow, Ward-1, Opp. Sai Kutir Bunglows, International Taxation, MG Road, Ahmedabad. Nikol, Ahmedabad-382350. [PAN No.ABXPN8061G] (Appellant) .. (Respondent) Appellant by : Shri Mehul Thakkar, AR Respondent by: Adjournment Application 02.01.2025 Date of Hearing Date of Pronouncement 03.01.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax(International Taxation), vide order dated 07.06.2024 passed for the Assessment Year 2022-23.
The Assessee has taken the following grounds of appeal:-
The Ld. A.O. has erred in law and on facts in not considering the detailed submission made on 23.03.2024, before passing the draft assessment order under section 144C(1) of the Income Tax Act.
Asst.Year –2022-23 - 2– 2. The Dispute Resolution Panel has erred in law and on facts in rejecting the application before it on the ground that the application before it was barred by limitation.
The Ld. A.O. has erred in law and on facts in making high pitch addition amounting Rs. 88,43,190, U/s. 69A of the Act despite the fact that the detailed explanation/submission was made in this regard on 23.03.2024.
4. The Ld. A.O. has erred in law and on facts in making addition of Rs. 12,00,000/- on account of LTCG being the sale consideration of the property without granting deduction towards cost of acquisition and cost of improvement, if any.
5. The Ld. A.O. has erred in law and on facts in initiation of penalty proceedings under section 271AAC(1) and 270A of Income Tax Act, 1961.
The assessee craves leave to add, amend, alter, delete, change or modify any or all grounds of appeal before or at the time of the hearing.
3. Heard the argument of both the parties and perused the facts on record. The issue to be examined by the revenue pertains to the sources of the loan received by the assessee. The assessee is an NRI could not submit the details of bank account before the Assessing Officer to prove the credits. In this case, the draft order has been passed by the Assessing Officer on 23.03.2024. The Ld.DRP, rejected the application of the assessee seeking direction on the section 144C on the grounds that the assessee has filed objection with the delay of one day.
It is fairly agreeable that the matter needs to be examined afresh by the Assessing Officer, hence in the interest of justice the issue is remanded the Assessing Officer to initiate assessment proceedings de-novo.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
This Order pronounced in Open Court on 03.01.2025
Sd/- Sd/- (TR SENTHIL KUMAR) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 03.01.2025 TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,