The Income Tax Appellate Tribunal (ITAT) Mumbai Bench directed to deposit Rs. 5500/- in Prime Minister relief Fund due to failure to comply with the notice issued by the CIT(A) to substantiate claim of exemption under Section 54/54F of the Income Tax Act, 1961 by supporting document.
Assesee, Sanghamitra Prakash Patel filed his return of income for the assessment year the case was reopened by recording reasons under Section 147 of the Income Tax Act. Subsequently, notices under Sections 143(2) and 142(1) of the Income Tax Act were issued which remained un-complied with.
Therefore, the Assessing Officer completed the assessment proceedings and added the amount of Rs.36,72,072/- to the income of the Assessee as long term capital gain under Section 54 of the Act.
The Assessee, though challenged the said addition before the CIT(A), inspite of sending six notices, neither appeared nor filed any reply on ITB portal or otherwise and, therefore, in the compelling circumstances, the CIT(A) decided the appeal of the Assessee ex-parte.
Aggrieved by the exparte order, the assessee filed an appeal before the tribunal m.
During the proceedings the tribunal observed that the assessee has provided several opportunities before the lower authorities for hearing the case. The Assessee neither filed its reply nor substantiated its claim of exemption under Section 54/54F of the Income Tax Act by any supporting document.
After considering the facts submitted and circumstances, the two member bench of Rajesh Kumar(Accountant Member) and Rajpal Yadav (Vice President) directed to deposit Rs. 5500/- in the Prime Minister’s Relief Fund within 30 days of receipt of the order by the Assessee. Devendra Jain appeared for the assessee and Surendra Kumar Meena appeared for the revenue
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