Taiyab Wadiwala vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Taiyab Wadiwala, filed a return of income on 30.07.2016, declaring a total income of Rs. 6,09,770/-. The case was reopened under section 147 of the Income Tax Act. The assessee sold immovable properties during the financial year 2015-16 and received Rs. 1,30,48,168/- as their share. The Assessing Officer (AO) asked the assessee to disclose the full sale consideration in their return of income for the assessment year 2016-17 and pay capital gain tax. The assessee disclosed only Rs. 40,95,349/-, resulting in a difference of Rs. 89,12,819/- which was added to the assessee's total income under the head of Long Term Capital Gain. A penalty proceeding under section 271(1)(c) was initiated for furnishing inaccurate particulars of income. The AO completed the assessment proceedings and raised a tax demand of Rs. 33,60,570/-.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) erred in dismissing the appeal ex parte without deciding the case on merits.
• 2. Whether the Commissioner of Income Tax (Appeals) erred in upholding the addition of Rs. 89,12,819/- on account of long term capital gain.
• 3. Whether the Commissioner of Income Tax (Appeals) erred in upholding the reopening of assessment under section 147 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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