In ITA no.473/Mum./2023 – ITAT - Commissioner of Income Tax (Appeals) dismissed appeal without obtaining remand report or considering Assessee's documents: ITAT (Mumbai) orders fresh adjudication by Assessing Officer
Members B.R. Baskaran (Accountant) & Sandeep Singh Karhail (Judicial) [24-05-2023]

Read Order: Ajay Jain v. Asstt. Commissioner of Income Tax

LE Correspondent

Mumbai, May 25, 2023: In a recent ruling, the Mumbai bench of the Income Tax Appellate Tribunal has found that the Commissioner of Income Tax (Appeals) [CIT(A)] did not obtain a remand report from the Assessing Officer (AO) nor considered the documents submitted by the assessee while dismissing his appeal regarding the computation of long-term capital gains and moreover, the lower authorities did not properly examine the correct residential status of the assessee.

Briefly stated facts of the case were that the assessee claimed to be a non-resident for the past 10 years and filed his return of income accordingly. The assessee stated that he was in India for only 65 days during the year under consideration. However, the AO without providing an opportunity to the assessee and without conducting any inquiry, treated the assessee as a resident and passed the assessment order. In support of his claim regarding the cost of acquisition of shares, the assessee had placed on record its application filed under Rule 46A of the Income Tax Rules, 1962 along with the relevant documents. According to the assessee, he was settled in the USA, and therefore, during the assessment proceedings, he was unable to collect or submit the relevant documents/information before the AO. It was only during the appellate proceedings before the CIT(A), that the assessee gathered the necessary information/documents and submitted them along with an application requesting their admission.

The bench of B.R. Baskaran (Accountant) and Sandeep Singh Karhail (Judicial) have ordered the restoration of the issues to the AO for a fresh adjudication.