Shaik Babafakruddin vs. ACIT, Circle-1

Parties Involved

Facts Summary

The assessee, Shaik Babafakruddin, filed an appeal against the order of the Commissioner of Income-Tax (Appeals) for the Assessment Year 2017-2018. The assessee had applied for settlement of the tax dispute under the Direct Tax Vivad Se Vishwas Scheme 2016 and paid the due tax on the income in dispute being capital gain. However, due to a delay in payment of tax, the assessee's declaration under the Direct Tax Vivad Se Vishwas Scheme was not accepted. The assessee submitted a copy of the IDS Form-3 manually to the Jurisdictional Officer and paid the full tax on the income. The Assessing Officer reopened the assessment by issuing a notice under section 148 of the Income Tax Act, 1961, and passed the assessment order on 23.06.2022, making an addition of Rs.30,49,614/- and raising another demand by applying the provisions of section 115BBE of the Act.…

Legal Issues

• 1. Whether the Ld. First appellate authority is justified in treating the appeal as withdrawn on the basis of form 2 received under The Direct Tax Vivd se Viswas Scheme 2024, ignoring the fact that the appellant did not file any request letter as specified under the scheme for withdrawal of appeal.
• 2. Whether the Ld. Commissioner of Income-Tax(Appeals) is not justified in not appreciating the submission dated 31.01.2024, wherein complete details of declaration filed under IDS 2016, taxes paid thereon and the manual tiling of form 3 under IDS 2016 and hence, the reopening of assessment on the basis of IDS 2016 is not just and proper.
• 3. Whether the Ld. Commissioner (Appeals) erred in noticing that Ld. Assessing Officer is not justified in making the addition of Rs.30,59,614/- pertaining to difference on account of Registered Value and Market Value of a property sold during AY 2015-16 in the relevant assessment year AY 2017-18.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Federation of Indian Granite & Stone Industry Vs. The Assistant Commissioner of Income Tax, Exemptions, Circle 1, Bangalore. / The DCIT, Central Circle 1, Bangalore.

  C Bench: Bangalore benchAY 2014-15, 2016-17, 2018-19 & 2020-21Dismissed

• ANKUR YADAV VS. NFAC, NEW DELHI

  Delhi Bench benchAY 2013-14Dismissed

• M/s. Applied Materials India Private Limited Vs. The Deputy Commissioner of Income Tax

  Bangalore benchAY 2015-16Dismissed

• ITA No.74/Del/2021

  Delhi Bench benchAY 2016-17Dismissed

• Focal Renewable Energy Two India Private Limited vs. ACIT & Focal Photovoltaic India Private Limited vs. ACIT

  Delhi Bench benchAY 2016-17Dismissed

• Sadashivamurthy Vs. The Income Tax Officer

  Bangalore benchAY 2020-21Dismissed