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Facts
The assessee filed an appeal against the order of the National Faceless Appeal Centre for AY 2018-19. The dispute pertains to an addition of Rs. 20,84,804/- made on account of short-term capital gains, which the assessee contended was a double addition, specifically relating to deemed dividend.
Held
The Tribunal directed the Assessing Officer to verify the facts and ensure that no double addition is made in the assessee's hands. The onus was placed on the assessee to present and prove all relevant facts during the consequential proceedings.
Key Issues
Whether the addition of Rs. 20,84,804/- towards short-term capital gains amounted to a double addition, particularly in the context of deemed dividend.
Sections Cited
Income-tax Act, 1961: Section 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2018-19 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1065187172(1), dated 28.05.2024, in case no. NFAC/2017-18/10011025, in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that the learned counsel representing assessee confines to the correctness of both the lower authorities’ action making short term capital gains addition of Rs. 20,84,804/- only to the extent that it represents an instance of double addition regarding his deemed dividend etc.
Faced with this situation the Revenue’s case is that once the assessee is only seeking to delete double addition, the learned Assessing Officer could indeed be directed to verify the necessary facts. The assessee is equally fair in not contesting the Revenue’s foregoing stand. I, therefore, deem it appropriate in these peculiar facts and circumstances that learned Assessing Officer’s consequential computation shall ensure that there is no double addition made in assessee’s hands on any issue, which shall be the latter’s liability only to plead and prove all the relevant facts in consequential proceedings within three effective opportunities. Ordered accordingly.
This assessee’s appeal is allowed for statistical purpose in above terms.
Order pronounced in open court on 27.11.2024.