ITAT restored matter to assessing authority for fresh adjudication.

1. Assessee filed return of income showing long term capital gain on sale of shares.

2. AO held the income to be from undisclosed sources, treating the transactions of purchase and/or sale of shares as bogus.

3. CIT(A) dismissed assessee’s appeal.

The ITAT held as under:

4. Admittedly, the A.O. has not considered the assessee's arguments, or as the case as made out; his order bearing no reference to the letter dated 24.2.2014 (apparently filed on 21/2/2014), along with accompanying documents, if any.

5. Again, this aspect ought to have been brought by the assessee to the notice of the ld. CIT(A), whose order is, again, without consideration of the assessee's case in- as-much as the same had not been considered by the A.O., whose order he merely confirms.

6. There has thus been in effect no adjudication at any stage.

7. Even if therefore the assessee's letter is found to be on the assessment file, the matter would require being restored to the file of the ld. CIT(A).

8. Under the circumstances and in view of the foregoing, it is only considered proper that the matter is restored back to the file of the assessing authority for fresh adjudication. 

Case Reference - Sonal Jayes Chheda vs Income Tax Officer.

IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, MUMBAI

BEFORE SHRI SANJAY ARORA, AM

I.T.A. No. 2198/Mum/2015

(Assessment Year: 2009-10)