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Facts
The assessee claimed exemption under section 54 of the Income Tax Act, 1961, by declaring a property transaction in her husband's return of income. The assessee failed to comply with notices and provide property documents to the authorities, leading to ex-parte orders.
Held
The Tribunal noted the assessee's failure to comply with notices and provide documentation, deeming it deserving of no leniency. However, it also acknowledged the husband's claim for exemption and offering of the property transaction amount for taxation.
Key Issues
Whether the assessee is entitled to exemption under Section 54 when the property transaction was declared in the husband's return and the assessee failed to comply with procedural requirements.
Sections Cited
54, 250
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Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRYSHRI PRABHASH SHANKAR
O R D E R
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 13.10.2025, impugned herein, passed by National Faceless Appeal Centre (NFAC), Delhi/Ld. Commissioner of Income Tax (Appeals) [in short Ld. Commissioner] u/s 250 of the Income Tax Act, 1961, [in short ‘the Act’] for the A.Y. 2017-18.
In this case, the controversy involved pertains to exemption claimed u/s 54 of the Act, by declaring the property’s transaction completely (100%) in return of income filed by the Assessee’s Husband, which has also been resulted into making the RIDDHI PRATIK BHATT addition and affirmation thereof in the hands of the Assessee through ex-parte orders passed by the authorities below. Admittedly, the Assessee failed to comply with the notices issued by the authorities below and therefore deserves no leniency. However, it is a fact that the Assessee’s husband has claimed the exemption u/s 54 of the Act, and/or offered the property transaction amount, to tax by filing his return of income.
On being asked, the Assessee failed to file the relevant property documents. Further, it is also a fact that the Assessee before both the authorities below has not filed any submissions/documents and made no compliance, which resulted into making and affirming the addition, on the basis of material available on record but not in its right perspective and proper manner.
Thus, considering the peculiar facts and circumstances in totality, for just and proper decision of the case, we are inclined to remand the instant case to the file of the Ld. Jurisdictional Assessing Officer (in short ‘JAO’), however, subject to deposit of Rs.11,000/- in the Revenue Department under ‘other heads’ within 15 days from today.
Thus, the case is accordingly remanded to the file of the JAO for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee.
We also direct the Assessee to file the relevant submissions/documents in due course of time. We clarify that in case of subsequent default, the Assessee shall not be entitled for any leniency.
The Assessee is also directed to update the latest address, telephone number, and e-mail address in the online portal of the Revenue Department for First Appeal and/or in the record of the Ld. Commissioner and the Jurisdictional Assessing Officer as well, without any delay and without any default.