Mukesh Batubhai Desai Vs ITO (ITAT Ahmedabad)
Meritorious Cases Not to be Dismissed on Limitation – Appeal Restored; ITAT Ahmedabad: NRI’s Appeal Restored – 442 Days’ Delay in Filing to be Condoned, Additions to be Reheard
Background
Assessee, a non-resident individual residing in the USA, did not file a return of income for AY 2015-16. AO received information that during FY 2014-15 Assessee:
- made a time deposit of ₹1 crore with Standard Chartered Bank,
- sold immovable property for ₹50.56 lakh, and
- earned interest of ₹64,466/- from SBI (with TDS deducted u/s 194A).
On this basis, AO reopened the case u/s 147 and completed assessment ex parte u/s 147 r.w.s. 144, determining total income at ₹1,51,20,466. Additions were made on account of (i) full sale consideration of land, (ii) unexplained investment in FDR, and (iii) interest income.
Assessee’s appeal before CIT(A) was dismissed on technical grounds, as there was a delay of 442 days in filing.
Assessee’s Arguments
- Assessee submitted that he had been residing in the USA for several years and had sold the land at Surat on 15.09.2014 through his father-in-law.
- He had undergone a divorce in 2014, which severed communication with his ex-wife’s family, causing him difficulties in attending proceedings and filing appeal in time.
- Claimed that AO erred in taxing the entire sale consideration of land as LTCG without granting credit for indexed cost of acquisition.
- Further argued that the FDR investment was sourced from the same sale proceeds, hence separate addition of ₹1 crore was unwarranted.
- Urged that his condonation petition explaining genuine hardships should have been sympathetically considered.
Revenue’s Stand
