2019 (11) TMI 1797 - AT - Income Tax

Revision u/s 263 - determination of short term capital gains - as per CIT AO s re-assessment in issue failed to take note of the assessee s STCG as per law - HELD THAT - CIT conclusion deserves to be examined afresh rendering the earlier assessment / re-assessment erroneous causing prejudice to interest of the Revenue. There is no rebuttal to all these clinching facts from the assessee s side. We therefore uphold the CIT s assumption of revision jurisdiction under challenge. Assessee appeal dismissed.

Summary

Issues involved: Appeal against Commissioner's order under section 263 of the Income Tax Act, 1961 for assessment year 2007-08.

Analysis:

1. Condonation of Delay: The appellant's appeal faced a delay of fourteen days in filing, which was condoned by the tribunal due to the appellant's illness as stated in the condonation petition. The Revenue side raised no objections to this delay, leading to its acceptance by the tribunal.

2. Absence of Appellant: Despite being called twice, the appellant did not appear, and it was noted that the appellant had passed away. The legal heir(s) of the deceased appellant sought adjournments on various dates, citing a pending writ petition challenging the validity of re-opening that was subject to the Commissioner's revision jurisdiction. The tribunal proceeded ex parte against the appellant's legal heir(s) due to their non-appearance.

3. Merits of the Issue: The Commissioner held that the Assessing Officer's re-assessment failed to consider the appellant's short-term capital gains of ?13,99,866, leading to the conclusion that the earlier assessment/re-assessment was erroneous and prejudicial to the Revenue's interest. The tribunal noted the absence of any rebuttal from the appellant's side regarding these findings, thereby upholding the Commissioner's assumption of revision jurisdiction.

4. Dismissal of Appeal: Based on the above analysis, the tribunal dismissed the appellant's appeal, affirming the Commissioner's order under section 263 of the Income Tax Act, 1961 for the assessment year 2007-08.

This detailed analysis covers the issues involved in the legal judgment comprehensively, outlining the tribunal's decisions and considerations regarding the appellant's appeal against the Commissioner's order.