LATE SANJAY JAIN,MUMBAI vs. ACIT CEN CIR 24-26, MUMBAI

The instant appeal is directed by legal heir’s of assessee under section 253 of the Income-tax Act (the Act) against the order of ld. Commissioner of Income-Tax (Appeals)-51 [ld. CIT(A)], Mumbai dated 29.02.2016 for Assessment Year 2011-12. The assessee has raised the following grounds of appeal:

Brief facts of the case are that the assessee filed return of income for assessment year 2011-12 on 27 September 2011 declaring total income of Rs. 10,70,310/-. The assessment was completed on 27th December 2014 Late Sanjay Jain under section 143(3). The assessing officer while passing the assessment order determined the total income at Rs. 32,79,500/- after making various addition including Long-term Capital Gain (LTCG) of Rs.21,17,260/-. The assessing officer also initiated penalty proceedings under section 271(1)(c) at the time of passing the assessment order. The assessing officer levied the penalty of Rs. 4,36,156/- under section 271(1)(c) vide order dated 06.08.2014. On appeal before Commissioner (Appeals) the action of assessing officer was confirmed. Therefore, further aggrieved by the order of learned Commissioner (Appeals) the legal heir of assessee has filed present appeal before us.

None appeared on behalf of appellant despite the service of notice through registered post. The notice sent for the hearing fixed on 18.06.2018 has returned back, after due intimation to the appellant.

We have considered the submission of learned DR for the revenue and perused the material available on record. We have noted that during the assessment proceedings the assessing officer made addition of long term capital gain of Rs. 21,17,260/-. The assessing officer made addition after considering the explanation furnished by assessee. The assessee contended before the assessing officer that he has sold a flat for a consideration of Rs. 1.70 Crore to M/s Rockweel Properties. The said flat was purchased by assessee in assessment year 2008-09. The assessee also furnished copy of purchase and sale deed of the said flat/ asset. The assessee also contended that neither the possession of the flat was received nor the total consideration of sale was received, therefore, LTCG was not declared in the return of income. The contention of the assessee was not accepted by assessing officer holding that the payment details shows that the assessee purchased flat for Rs. 1.10 Crore and sold the same at the consideration of Rs. 1.70 crore, out of which the assessee has received 1.25 Crore during the financial year. Therefore, the assessing officer made the addition on account of LTCG of Rs. 21,17,165/-. The assessing officer after providing opportunity of hearing to the assessee levied the penalty under section 271(1)( c) on the addition of LTCG. We have noted that the assessee remained ex-parte before first appellate authority. Therefore, the 3 ITA No. 25/M/17- Late Sanjay Jain ex parte order was passed by ld. Commissioner (Appeals). Before us, neither the appellant nor his representative attended the proceeding despite service of notice of hearing. The appellant has not filed any documentary evidence to substantiate his contention raised in the present appeal.