Case Number: ITA 657/DEL/2021
Appellant: Shivani Madan, New Delhi
Respondent: ACIT Central Circle-05, New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-06-04
Order Type: Final Tribunal Order
Date of Order: 2023-08-18
Pronounced On: 2023-08-18
This article provides a detailed analysis of the case ITA No. 657/DEL/2021, where Shivani Madan, New Delhi, filed an appeal against ACIT Central Circle-05, New Delhi, concerning the assessment year 2016-17. The appeal was dismissed due to the assessment of notional rent on jointly owned property.
Shivani Madan, a resident of Saket, New Delhi, had filed an appeal against the order of the CIT(A)-24, New Delhi, dated 18.03.2021. The appellant was dissatisfied with the assessment order for the year 2016-17, which confirmed the additions made by the ACIT, Central Circle 5, New Delhi.
The primary issue in this case was the addition of Rs. 9,80,000/- as notional rent under the head “Income from House Property” in respect of the second house owned jointly by Shivani Madan and her husband. The appellant contested the addition on the grounds that her actual share in the property was only 5.4%.
The appellant, represented by Shri Sahil Sharma, argued that the addition of notional rent was incorrect as the property was already assessed in the hands of her husband, and her actual share was merely 5.4% of the purchase consideration. She further argued that the computation of notional rent by the AO was contrary to the relevant provisions of the Income Tax Act.
The respondent, represented by Shri Amitabh Kumar Sinha, CIT(DR), pointed out that the appellant had not provided any grounds of appeal. He also referred to the Tribunal’s decision in the appellant’s own case for the assessment year 2015-16, where a similar issue was decided against her.
The tribunal, comprising Shri Chandra Mohan Garg, Judicial Member, and Dr. B.R.R. Kumar, Accountant Member, reviewed the case. They found merit in the respondent’s contention that the appellant had failed to file grounds of appeal, rendering the appeal defective.
Income Tax Appellate Tribunal, Delhi Bench ‘H’, New Delhi
Before: Shri Chandra Mohan Garg, Judicial Member & Dr. B.R.R. Kumar, Accountant Member
Order:
This appeal filed by the assessee for the assessment year 2016-17 is directed against the order of CIT(A)-24, New Delhi dated 18.03.2021. At the time of hearing, no one attended the proceedings on behalf of the assessee. Therefore, the appeal of the assessee is taken up for hearing in the absence of the assessee and is being disposed off on the basis of material available on record.
At the outset, Ld. Sr. DR pointed out that the assessee has not filed any grounds of appeal. We have heard Ld. Sr. DR and perused the material available on record. We find merit in the contention of Ld. Sr. DR as it is transpired from the records that the assessee has failed to raise grounds of appeal. Therefore, in the absence of any grounds of appeal, the appeal of the assessee is defective and hence, deserves to be dismissed on this basis alone. We therefore, dismissed the appeal filed by the assessee being defective. However, liberty is granted to the assessee to approach the Tribunal for restoration of appeal if the defect is removed/rectified.
Final Judgment:
In the result, the appeal of the assessee is dismissed.
Order Pronounced and Signed in Open Court on 18.08.2023.
Signed:
Shri Chandra Mohan Garg, Judicial Member
Dr. B.R.R. Kumar, Accountant Member
Date: 18th August 2023
This case highlights the importance of adhering to procedural requirements in tax litigation. The dismissal of Shivani Madan’s appeal due to the failure to file grounds of appeal serves as a reminder for taxpayers and their representatives to meticulously follow legal protocols to avoid adverse outcomes.
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