Dharmeshkumar Parsottambhai Ukani Vs ACIT (ITAT Surat)
Summary: The Surat Bench of the Income Tax Appellate Tribunal (ITAT) has allowed for statistical purposes the appeal filed by Dharmeshkumar Parsottambhai Ukani for AY 2011-12 and restored the matter to the Assessing Officer (AO) for fresh examination. The Tribunal directed the AO to re-examine the issue in light of the assessee’s submissions and documents produced in the paper book, after providing a reasonable opportunity of being heard. The assessee was also directed to cooperate with the set-aside proceedings and provide all necessary documents and evidence.
The assessee had originally filed his return of income under Section 139(1) of the Income-tax Act, 1961 for AY 2011-12 on 08 February 2012, declaring total income of ₹4,90,690. The return was processed under Section 143(1). Subsequently, the AO received information that the assessee, jointly with three other persons, had sold immovable property registered with the Sub-Registrar Office, Athwa, Surat, for ₹80 lakh. According to the information available with the AO, the capital gains arising from the transfer had not been disclosed in the return.
The assessment was accordingly reopened under Section 147 after recording reasons and obtaining the necessary approval. Notice under Section 148 was issued on 29 March 2018. The assessment order records that the assessee did not initially comply with the notices issued during the reassessment proceedings. The AO subsequently furnished the recorded reasons on the assessee’s request. The AO also referred to information concerning three properties having equal sale consideration and the assessee’s co-ownership in the properties. On that basis, the AO worked out capital gains and made an addition of ₹30 lakh under Section 69 of the Act.
