Case Law Details
Nitin Amratlal Brahmbhatt Vs ACIT-24(3) (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently remanded the case of Nitin Amratlal Brahmbhatt versus Assistant Commissioner of Income Tax-24(3) for the assessment year 2014-15. The ITAT decision follows the appeal filed by Brahmbhatt against the order of the Commissioner of Income Tax (Appeals)-48, Mumbai. The central issue revolves around the assessment order passed under Section 143(3) of the Income Tax Act, 1961, and the denial of a fair opportunity of hearing to the assessee.
Detailed Analysis: Nitin Amratlal Brahmbhatt, an individual, filed his income tax return for the assessment year 2014-15, declaring a total income of ₹27,41,317. The assessing officer (AO) initiated scrutiny, focusing on long-term capital gains claimed as exempt under Section 10(38) related to the sale of shares of Rissa International.
The AO, during assessment proceedings, raised doubts about the genuineness of the capital gains claim. Consequently, an assessment order under Section 143(3) was passed on December 27, 2016, determining the total income at ₹5,41,49,470. The order included the addition of the long-term capital gain and a commission at the rate of 3%.
Aggrieved by the order, Brahmbhatt appealed to the Commissioner of Income Tax (Appeals), who dismissed the appeal, citing the assessee’s non-appearance despite multiple notices. The appeal also contested the addition on merits.
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