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Facts
The assessee filed an income tax return for AY 2015-16, which was selected under CASS. The Assessing Officer made an addition of Rs. 20,64,939/-, treating the long-term capital gain from the sale of shares as business income, which the assessee had claimed as exempt under Section 10(38). The CIT(A) dismissed the assessee's appeal but failed to address all issues, particularly a part of the long-term capital gain.
Held
The Income Tax Appellate Tribunal, with the consent of both parties, restored the matter back to the CIT(A). The CIT(A) is directed to pass a fresh order, adjudicating all issues raised in the appeal after providing the assessee with a reasonable opportunity.
Key Issues
Whether long-term capital gain from share sales should be treated as business income or exempt under Section 10(38), and the procedural lapse of CIT(A) in not addressing all grounds of appeal.
Sections Cited
143(3), 10(38)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH ‘SMC’, LUCKNOW
Before: SHRI ANADEE NATH MISSHRA
2015-16 against impugned appellate order dated 11/12/2019 passed by learned Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
(B) The facts of the case, in brief, are that the assessee is an individual and filed his return of income for the year under consideration on 17/03/2016 declaring total income at Rs.14,52,000/-. The case was selected under CASS. The Assessing Officer passed assessment order under section 143(3) of the I.T. Act on 22/12/2017 and determined the total income of the assessee at Rs.35,16,939/- (rounded off to Rs.35,16,940/- and made the addition of Rs.20,64,939/- treating the same as earned against purchase and sale of share and treated as business income of the assessee. Being aggrieved, the assessee went in appeal before the learned CIT(A). The learned CIT(A), vide impugned appellate order dated 11/12/2019 has dismissed the appeal of the assessee. Now the assessee is in appeal before the Income Tax Appellate Tribunal.
(C) At the time of hearing in Tribunal, learned A.R. for the assessee drew attention to written submissions, relevant portion of which is reproduced below:
(C.1) Placing reliance on the aforesaid written submissions, the learned A.R. for the assessee submitted that the issue in dispute be restored back to the file of the learned CIT(A) with the direction to pass fresh order deciding all the issues raised in appeal filed before him. The learned Departmental Representative expressed no objection. In view of the foregoing, as both sides are in agreement, the issues in dispute are restored back to the file of the learned CIT(A) with the direction to pass fresh order deciding all the issues raised in appeal filed before him in accordance with law after giving reasonable opportunity to the assessee.
(D) In the result, the appeal of the assessee stands allowed for statistical purposes.
(Order pronounced in the open court on 25/11/2025)