MAYANK SHIVHARE,GWALIOR vs. ITO 1(2), GWALIOR, GWALIOR
Facts
The assessee sold shares of Turbo Tech Engineering Ltd. and claimed long-term capital gains, which the Assessing Officer treated as unexplained cash credit. The CIT(A) decided the appeal ex-parte and confirmed the addition.
Held
The Tribunal noted that the assessee could not appear before the CIT(A). In the interest of justice, one more opportunity was given to the assessee.
Key Issues
Whether the CIT(A) decision made ex-parte was justified, and if the assessee should be given another opportunity to present their case.
Sections Cited
143(3), 10(38), 68, 115BE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘SMC’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘SMC’ AGRA
(Through Physical/Virtual Hearing)
BEFORE SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER
ITA No.63/Agr/2024 [Assessment Year: 2014-15]
Mayank Shivhare, Income Tax Officer, Shivhare Associates, Jinsi Ward-1(2), Nala No.1, Opp. Sudarshan Vs Aayakar Bhawan, Hotel, Gwalior, City Centre, Gwalior, Madhya Pradesh-474001 Madhya Pradesh-474011 PAN-AZVPS5145A Appellant Respondent
Appellant None Respondent Shri Shailender Srivastava, Sr. DR
Date of Hearing 01.04.2025 Date of Pronouncement 01.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte
order dated 25.01.2024 of National Faceless Appeal Centre, Delhi, relating
to Assessment Year 2014-15 arising out of order u/s 143(3) of the Income
Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 29.12.2016 passed
by the Income Tax Officer, Ward-1(2), Gwalior.
None appeared on behalf of the assessee. However, the appeal is
being decided after hearing the ld. Sr. DR and on the basis of material
available on record.
Brief facts of the case: In this case, the assessment was completed
u/s 143(3) of the Act. The assessee had filed ITR-4 showing salary income
2 ITA No.63/Agr/2024]
of Rs.1,65,000/- and income from business Rs.8,91,329/- and income
from other sources of Rs.1,24,685/-. The Assessing Officer noted that
during the year, the assessee had sold 15000 shares of the company
Turbo Tech Engineering Ltd. (scrip name Turbo Tech) and had declared
long term capital gains amounting to Rs.25,75,402/- and claimed it as
exempt u/s 10(38) of the Act. The Assessing Officer on the basis of
enquiries made by the Investigation Wing of Kolkata and as per the facts
discussed in the assessment order held that the shares of Turbo Tech
Engineering Ltd. was a penny stock and taxed the entire receipts
amounting to Rs.26,14,250/- on sale of the said shares as unexplained
cash credit u/s 68 of the Act r.w.s 115BE of the Act.
Aggrieved with the said order, the assessee filed an appeal before the
Ld. CIT(A). The Ld. CIT(A) decided the appeal ex-parte and confirmed the
addition made by the Assessing Officer.
Aggrieved with the said order, the assessee is in appeal before us.
The Ld. DR supported the orders of the authorities below.
We have heard the ld. DR and perused the materials available on
record. In this case, the assessee could not appear before the Ld. CIT(A).
Therefore, we are of the considered view that in the interest of justice, one
more opportunity be given to the assessee to represent its case effectively
before the ld. CIT(A). We, therefore, set-aside the order of the ld. CIT(A) and
restore the matter to his file to pass an order afresh after giving a
reasonable opportunity of being heard to the assessee. Further, the
assessee is also directed to appear before the ld. CIT(A). Accordingly,
3 ITA No.63/Agr/2024]
grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 1st April, 2025.
Sd/- Sd/- [SUNIL KUMAR SINGH] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 01.04.2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,
