Case Number: ITA 1504/DEL/2021
Appellant: Hasameen, Meerut U.P.
Respondent: ITO, WARD-1(2)(4) Meerut U.P, Meerut (U.P)
Assessment Year: 2012-2013
Case Filed On: 2021-10-25
Order Type: Final Tribunal Order
Date of Order: 2022-07-29
Pronounced On: 2022-07-29
The case of Hasameen vs. ITO, Ward-1(2)(4) Meerut (U.P.) involves the dispute over the assessment of short-term capital gain for the assessment year 2012-2013. The appellant, Hasameen, a resident individual of Meerut, U.P., did not file any return of income under Section 139(1) of the Income Tax Act for the said assessment year. Subsequently, the assessing officer received information that Hasameen had sold an immoveable property during the year for a consideration of Rs. 52,77,000. Since the appellant did not offer any capital gain, the assessing officer reopened the assessment under Section 147 of the Act.
During the assessment proceedings, the husband of the appellant appeared and submitted a written reply admitting the sale of immoveable property and requested more time to furnish the required documents. Alleging that the appellant did not provide the documents, the assessing officer completed the assessment under Section 144 read with Section 147 of the Act, adding back an amount of Rs. 52,77,000 as short-term capital gain.
Against the assessment order, the appellant preferred an appeal before the Commissioner of Income Tax (Appeals). During the appellate proceedings, the appellant sought to file additional evidences and grounds related to the capital gain and the corresponding deduction under Section 54F of the Act. However, the first appellate authority refused to admit the additional evidences on the ground that the appellant had sufficient opportunity to produce them at the assessment stage but did not do so.
Upon hearing the submissions from both sides and examining the material on record, the Judicial Member, Shri Saktijit Dey, observed that the appellant deserved an opportunity to furnish the necessary documentary evidences to establish the claim on the issue of addition made on account of short-term capital gain. The Tribunal noted that the assessing officer treated the assets sold as short-term capital assets, whereas the appellant claimed that it was a long-term asset and the capital gain should be assessed as long-term capital gain. Additionally, the appellant claimed to have made investments in terms of Section 54F of the Act.
Considering that the assessment proceedings were concluded under Section 144 of the Act and the appellant was unable to furnish the necessary documents at that stage, the Tribunal opined that an opportunity should have been granted to the appellant to establish the claims through supporting evidences.
The Tribunal set aside the impugned order of the Commissioner (Appeals) and restored the issues back to the assessing officer for de novo adjudication after providing a due and reasonable opportunity of being heard to the appellant. The appellant was granted the liberty to furnish any evidence before the assessing officer, who was directed to examine the evidences on their merits and decide the issue in accordance with the law. The grounds raised by the appellant were allowed for statistical purposes.
In conclusion, the appeal filed by Hasameen against the assessment order was allowed for statistical purposes. The Tribunal emphasized the importance of providing the appellant an opportunity to present additional evidences to substantiate the claims regarding the nature of the capital assets and the corresponding deductions.
Order Pronounced: 29th July 2022
Judicial Member: Shri Saktijit Dey
Note: This summary is based on the final order pronounced by the Income Tax Appellate Tribunal, Delhi Bench ‘SMC’, New Delhi.
Hasameen vs. ITO, Ward-1(2)(4) Meerut (U.P.): Dispute Over Short-Term Capital Gain Assessment
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