SAULET SHAFEEQ,BHOPAL vs. ITO NFAC, DELHI
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI
आदेश / O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by appeal-order dated 20.12.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 22.03.2022 passed by learned NFAC, Delhi [“AO”] u/s 147 r.w.s. 144 & 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2015-16, the assessee has filed this appeal.
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Saulet Shafeeq, Bhopal ITA Nos. 105/Ind/2024 - AY 2015-16 2. Section 250(6) of the Income-tax Act, 1961 provides “The order of the
Commissioner (Appeals) disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon and the reason for the
decision.”. We observe that in the present case, the Ld. CIT(A) has dismissed
assessee’s appeal although due to non-prosecution by assessee on the dates
of hearing but still without complying with the mandate of section 250(6).
Therefore, the impugned first appeal-order passed by Ld. CIT(A) deserves to
be set aside.
It further emerged during hearing that the AO, while completing
assessment, has made an addition of Rs. 1,20,00,000/- on account of
Short-term Capital Gain from sale of property by assessee without giving
deduction of cost of acquisition. Thus, the income of Rs. 1,20,00,000/-
assessed by AO is against the very scheme of the Act which prescribes that
the taxable capital gain shall be computed after deducting cost incurred by
assessee. Ld. DR, however, submitted that the AO has noted in assessment-
order “In absence of details/evidence in support of cost of acquisition of the
immovable property sold out, the same is taken at Rs. Nil.” but still could not
dispute that taxing entire sale-proceed as capital gain without giving
deduction of cost to assessee is against the scheme of act and
unsustainable.
Ld. AR at that stage submitted that the assessee is ready and willing
to make necessary submission before AO if an opportunity is given by re-
storing the matter at the level of AO. Accordingly, Ld. AR prays that the
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Saulet Shafeeq, Bhopal ITA Nos. 105/Ind/2024 - AY 2015-16 present matter should be remanded to AO. Ld. DR for revenue agrees with
the prayer of Ld. AR but makes a request to direct the assessee to represent
his case before AO. Accordingly, we remand this matter back to the file of
AO for a proper adjudication on merit after giving opportunity of hearing to
the assessee, uninfluenced by his earlier order in any manner. The assessee
is also directed to ensure participation in the hearings as may be fixed by
AO and do not seek unnecessary adjournments failing which the AO shall
be at liberty to pass appropriate order in accordance with law.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 29.08.2024.
Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore िदनांक /Dated : 29.08.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore
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