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Facts
The assessee appealed against the disallowance of Section 11(1A) exemption on capital gains amounting to Rs. 1,81,71,431/-, which was upheld by the lower authorities. The original assessment was framed under Section 143(3) of the Income-tax Act, 1961.
Held
The Tribunal observed that the CIT(A)-NFAC's order lacked detailed adjudication as mandated by Section 250(6) of the Act. Consequently, the case was remanded back to the CIT(A)-NFAC for fresh and proper adjudication, with the condition that the taxpayer must present all relevant facts within three effective opportunities.
Key Issues
Whether the disallowance of Section 11(1A) exemption on capital gains was legally sound, and whether the appellate authority had fulfilled its obligation under Section 250(6) by providing a detailed adjudication.
Sections Cited
Section 143(3), Section 11(1A), Section 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
This assessee’s appeal for assessment year 2015-16, arises against the National Faceless Appeal Centre [in short, the “NFAC”] Delhi’s DIN and Order No. ITBA/NFAC/S/250/2023- 24/1061751710(1), dated 29.02.2024, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appeared at the behest of the assessee. We accordingly proceeded ex-parte.
Learned CIT(DR) vehemently argued during the course of hearing that both the lower authorities herein have rightly disallowed the assesee’s section 11(1A) exemption claim in the course of assessment framed on 13.12.2017 as upheld in the lower appellate proceedings. He takes us to pages 4 to 5 of the lower appellate findings running from paras 6 to 7 confirming the impugned addition of Rs.1,81,71,431/- representing capital gains.
We, however, note that the CIT(A)-NFAC’s impugned lower appellate discussion has neither framed any point of discussion nor it gives detailed adjudication thereupon as contemplated under section 250(6) of the Act. We thus deem it as a fit case to be restored back to the CIT(A)-NFAC for its fresh and appropriate adjudication as per law subject to a rider that tax payer shall plead and prove all the relevant facts at its own risk and responsibility within three effective opportunities in consequential proceedings. 5. This assessee’s appeal is allowed for statical purposes in above terms. Order pronounced in the open court on 20th November, 2024