KANTA MITTAL,DELHI vs. CIT(A)-26, DELHI

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner
Of Income
Tax-
Appeals
-26
Delhi
[hereinafter referred to as “Ld. CIT(A))”] vide order dated 13-12-
2024 pertaining to A.Y. 2014-15 arising out the assessment order u/s.147 r.w.s. 143 of the Income-tax Act, 1961, (in short
‘the Act’).

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2. The assessee has raised the following grounds in appeal as under:
1. The CIT(A) has erred in law and facts in upholding the reassessment proceedings initiated under section 147 of the Income Tax Act 1961, without any valid reason to believe that income had escaped assessment.
2. The CIT(A) has failed to consider that the reassessment proceedings were mechanically initiated without proper verification and enquiry, contrary to the principles laid down under the law.
3. The CIT(A) has wrongly upheld the addition of Rs.
3,74,07,986/- despite the fact that the sale consideration of agriculture land was duly reported and capital gain was exempt under section 54B of the Income Tax Act 1961. 4. The CIT(A) erred in ignoring the reply filed by appellant on 07-
10-2024, which contained all necessary facts and explanations in response to the show cause notice.
5. The CIT(A) has erred in concluding that the appellant did not participate in the appellate proceedings despite the submission of the reply and documentary evidence on record.
6. The CIT(A) has acted in violation of the principles of natural justice by not providing the appellant with a fair opportunity to present its case.
7. The CIT(A) has erroneously confirmed the addition without considering the fact that the sale deed for the agriculture land

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clearly evidenced that the capital gain was not taxable as per the provisions of the Income Tax Act.
8. The impugned order is contrary to the law and deserves to be quashed.
9. The assessee seeks leave to add to modify forego or otherwise alter all or any of the grounds of appeal as herein- above.
3. The brief facts of the case are that the assessee engaged in the business of commission agency and trading.
The assessee had executed the sale deed of the agriculture land along with five other co-owners and the sale consideration was disclosed in the registered sale deed. The assessing officer initiated the proceeding under section 147
of the Act and assessed the income of the assessee at Rs.
4,58,46,164/
- after making the addition of Rs.
3,74,07,986/-.
4 Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. CIT (A) who vide his order dated
13-12-2024 dismissed the appeal. Being aggrieved the order of the Ld. CIT(A) the assessee is in appeal before the Tribunal.
5. ld. AR of the assessee submitted that the Ld.CIT(A) passed the ex-parte orders. He also submitted that the opportunity of the being heard be provided to the assessee.
Learned authorized representative for Department of 4
Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the Ld. CIT(A).
6. We have heard the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. CIT (A), the assessee did not file his submissions, for which the appeal was dismissed in non-compliance by the Ld. CIT(A).
7. Since in the instant case the assesse has failed to file his submission after availing the various opportunity. The assessee did not appear before the lower authorities. The Ld. CIT(A) dismissed the appeal in non-compliance after deciding the grounds raised by assessee. Therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. Assessing officer with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld.
Assessing officer and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Order pronounced in the open court 25.08.2025. (MANISH AGARWAL)
(JUDICIAL MEMBER)
Neha, Sr. PS
Date:08.09.2025