Bhakti Kishor Gada Vs ITO

Parties Involved

Facts Summary

The assessee, Bhakti Kishor Gada, filed his return of income declaring total income of ₹3,23,920/- for the assessment year 2014-15. The return was selected for scrutiny under section 143(3) of the Income-tax Act, 1961. The exemption claimed under section 10(38) of the Act against long-term capital gain arising from share/scrip transactions was treated as bogus/sham. Consequently, ₹31,88,889/- was added under section 68 as unexplained cash credit, and the total income was assessed accordingly. The assessee appealed against this addition before the first appellate authority, which was dismissed for non-prosecution. The assessee then filed an appeal before the Income Tax Appellate Tribunal challenging the action of the first appellate authority on the grounds of violation of the principle of natural justice and on merits.…

Legal Issues

• 1. Whether the first appellate authority violated the principle of natural justice by dismissing the appeal ex-parte?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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