Mehinder Sharma Vs ACIT (ITAT Delhi)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) of Delhi has restored an appeal filed by Mehinder Sharma against an order from the National Faceless Appeals Centre (NFAC). The appeal, originally dismissed by the NFAC on grounds of non-compliance, has been sent back with a directive for the NFAC to provide one final opportunity to the assessee to present his case.
The case, Mehinder Sharma vs. ACIT, involves the assessment year 2016-17. The assessee, a technical consultant, had filed a return of income declaring a total income of Rs. 4,55,07,320. However, the Assessing Officer (AO) completed the assessment with additions totaling Rs. 4,71,29,759. These additions included Rs. 1,00,00,000 under Section 68 of the Income Tax Act for an alleged unexplained cash credit from M/s Encore Infra Advisory, and Rs. 3,71,29,759 under the head “Capital Gains.” The assessee contested the capital gains addition, arguing that he was not the actual owner of the property at the time of transfer, but that the owner was M/s. ANS Constructions Pvt. Ltd., which had already declared the income. He also contended that the transfer of the property to the company was exempt under Section 47(xiv) of the Act.
