Case Law Details
Laxman Mahadev Patil Vs ITO (ITAT Mumbai)
Introduction: The case of Laxman Mahadev Patil Vs ITO reached the Income Tax Appellate Tribunal (ITAT) Mumbai, challenging the Commissioner of Income Tax (Appeals) [CIT(A)]’s order. This appeal pertains to the Assessment Year 2011-12, targeting the CIT(A)’s decision dated 30.05.2023, stemming from the Assessing Officer’s order under Section 143(3) and Section 147 of the Income Tax Act, 1961, dated 16.11.2018.
Detailed Analysis: The assessment under Section 143(3) revealed that the assessee had sold an inherited plot of land, triggering a reassessment. The property’s market value, as per the Departmental Valuation Officer, differed significantly from the sale consideration. The Assessing Officer, in the impugned order, reassessed the income under ‘Capital Gains’ at Rs.2,96,76,817/-. The assessee challenged this before the CIT(A) on various grounds, including procedural irregularities and factual inaccuracies.
However, the CIT(A) dismissed the appeal without addressing the substantive points raised by the assessee. The primary reason cited was the assessee’s non-response to hearing notices. This procedural lapse led the ITAT Mumbai to set aside the CIT(A)’s order, emphasizing that it did not adhere to the statutory requirements outlined in Section 250(6) of the Income Tax Act.
During the hearing, the assessee expressed satisfaction with a restoration of the matter to the CIT(A) for a de novo consideration. The Revenue did not vehemently oppose this plea. The ITAT Mumbai, in the interest of justice, deemed it appropriate to allow the appeal for statistical purposes, emphasizing the need for a thorough and compliant adjudication process.
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