Reeshu Goel Vs ITO (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi Bench, has set aside a reassessment order against Ms. Reeshu Goel for Assessment Year 2013-14. The Tribunal’s decision was based on two primary grounds: a significant procedural lapse by the Assessing Officer (AO) in failing to dispose of the assessee’s objections to the reassessment notice, and a lack of concrete evidence to substantiate the claim that the Long Term Capital Gain (LTCG) from share sales was bogus. The ruling also consequently quashed an addition for notional commission.
Background of the Case
Ms. Reeshu Goel had initially applied for 50,000 shares of M/s AAR Infrastructure Ltd. for ₹5,00,000/- in January 2011. These shares were allotted in February 2011 and subsequently dematerialized. Following the amalgamation of M/s AAR Infrastructure Ltd. with M/s CCL International Ltd. in February 2012, Ms. Goel received 1,25,000 shares of M/s CCL International Ltd. These shares, held for over 18 to 20 months, were sold between August and October 2012 for ₹1,82,76,483/-, leading to a claimed LTCG of ₹1,77,25,158/- in her income tax return for AY 2013-14.
The case was reopened by the AO under Section 147 of the Income Tax Act, 1961, alleging that income related to these transactions had escaped assessment. In response to the Section 148 notice issued on August 11, 2016, Ms. Goel filed detailed objections on May 23, 2017. However, these objections were not addressed or disposed of by the AO, either through a separate order or within the final assessment order. The Commissioner of Income Tax (Appeals) [CIT(A)] dismissed the assessee’s challenge on this procedural point, erroneously concluding that no such objections were filed.
