Ahmed Lakadia vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Ahmed Lakadia, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2016-17. The assessee claimed exemption for certain income under Section 10(38) of the Income Tax Act. However, the Assessing Officer treated the claimed exemption as bogus long-term capital gains from investment in penny stock and added Rs. 2,88,35,888/- to the assessee's income under Section 68 of the Act. The Commissioner of Income Tax (Appeals) dismissed the assessee's appeal for non-appearance and non-compliance with hearing notices. The assessee appealed to the Income Tax Appellate Tribunal, citing personal hardships and the death of close family members as reasons for the delay in filing the appeal.…

Legal Issues

• 1. Whether the Ld. Commissioner of Income Tax (Appeals) erred in dismissing the appeal without giving proper opportunity to the appellant?
• 2. Whether the addition of Rs. 2,88,35,888/- as bogus LTCG under Section 68 of the Income Tax Act was justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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