Kalpana Nitin Shah Vs. ITO 19(2)(2)

Parties Involved

Facts Summary

The assessee, Kalpana Nitin Shah, did not file her return of income for the relevant year. Information in the NMS Module indicated that she sold an immovable property for Rs. 55,00,000/- during AY 2011-12. Since no ITR was filed within the mandated time limit, the case was re-opened under section 148 of the Income Tax Act to examine the capital gain income from the property sale. The assessee responded to the section 148 notice declaring a total income of Rs. 18,70,760/-, including Short Term Capital Gain (STCG) of Rs. 14,67,190/-. The Assessing Officer (AO) noticed that interest income of Rs. 13,15,618/- was not offered as income from other sources and made an addition for this amount. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), but the appeal was dismissed due to non-prosecution. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Validity of reassessment proceedings initiated without prior approval from the Principal Chief Commissioner of Income Tax/Chief Commissioner of Income Tax.
• 2. Addition of interest income of Rs 13,52,618 by the AO.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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