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Facts
The assessee sold a property for Rs. 80,00,000/- and purchased another for Rs. 55,50,000/-, but did not file an ITR for AY 2012-13. The Assessing Officer (AO) completed the assessment ex-parte, making additions of Rs. 1,09,59,250/-.
Held
The Tribunal restored the issue to the file of the AO, directing them to grant a final opportunity to the assessee to substantiate their claim and decide the issue as per facts and law, as both lower authorities had passed ex-parte orders.
Key Issues
Whether the assessment order passed ex-parte without proper opportunity of hearing and valid notices was legal, and whether additions made were justified.
Sections Cited
147, 148, 144, 250, 151, 54F, 141(1)
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Income Tax Appellate Tribunal, DELHI BENCH “C”, DELHI
Before: SH. SUDHIR KUMAR & SH. MANISH AGARWAL
Date of hearing: 21/08/2025 Date of Pronouncement: 21/08/2025 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the National Faceless Appeal Centre Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 20-12-2023 pertaining to A.Y. 2012-13 arising out the assessment order dated 20.11.2019 u/s.147 r.w.s. 144 of the Income-tax Act, 1961, (in short ‘the Act’).
The assessee has raised following grounds of appeal :-
1. Because the CIT(A) NFAC has passed the impugned order ex-parte without proper opportunity of being heard and in limine, without adjudicating any of the jurisdictional and the legal issues raised by the Appellant before the Ld. CIT(A) besides the merits which is in gross violation of the provision of section 250 of the Act, and hence the impugned assessment order is grossly illegal, and liable to be set aside.
2. Because the CIT(A) NFAC has passed the impugned order ex-parte without appreciating the fact that the AO has illegally initiated the assessment proceedings u/s 147/148 of the Act without any valid notice being issued at the correct address of the Assessee and without serving any valid notice u/s 148 of the Income Tax Act, 1961 in as much as even the said ex parte order of the assessment wa proceeding communicated upon a phone call by the Department regarding the demand raised in pursuance of the said order and therefore the entire assessment proceedings and the assessment order passed u/s 147/144 of the Act are illegal and liable to be quashed.
3. Because the Ld. CIT(A) NFAC lias erred in law and on fact in confirming the addition made by the AO without appreciating the fact that reasons recorded by the AO are factually wrong, arbitrary and without application of mind, recording escapement of income amounting to Rs. 1,38,19,000/- without appreciating the facts of the case and without any independent enquiry and without any tangible material and therefore the entire assessment proceedings are liable to be quashed.
4. Because the Ld. CIT(A) NFAC has erred in law and on fact in confirnning the addition made by the AO without appreciating the fact the assessment proceedings u/s 147/148 of the Act has been initiated without any valid independent approval as per law in terms of Sec. 151 of the Act, in as much as the AO has taken the approval from two different authorities which is against the provisions of the law and thus the entire proceedings are liable to be quashed.
5. Because the Ld. CIT(A) NFAC has erred in law and on fact in confirming the addition made by the AO without appreciating the fact that approval has been granted without any application of mind, mechanically, on the dotted lines proposed by the AO, which is totally arbitrary in nature and thus the entire proceedings are illegal and void ab initio.
6. Because the Ld. CIT(A) NFAC has erred in law and on fact in confirming the addition made by the AO without appreciating the fact that the entire sale consideration of Rs. 80,00,000/- from the sale of the residential plot, has been reinvested in residential properties and thus the capital gain is exempt under the provisions of the Section 54F of the Act and therefore the addition of Rs. 80,00,000/- made by the AO is liable to be deleted.
7. Because the Ld. CIT(A) NFAC has erred In law and on fact in confirming the addition made by the AO of Rs. 29,59.250/-, without appreciating the fact that this investment in 50% share of the property purchased is self explained from sale proceeds of the property sold for Rs. 80,00,000/- and therefore the addition of Rs. 29,59,250/- made by the AO is liable to be deleted.
8. Because the Ld. CIT(A) NFAC has erred in law and on fact in confirming the addition made by the AO without appreciating the fact that AO has passed the assessment order without serving any valid notice/show cause and thus without any opportunity of being heard, in gross violation of principles of Natural Justice, in the absence of any cogent material and independent inquiry and thus the entire assessment order making additions of Rs. 1,09,59,250/- is liable to be quashed.
The appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.
Whether there is any delay in filing of appeal (if yes, please attach application seeking condonation of delay)
The appeal is time barred by 368 days. In the application the assessee stated that the appeal should have filed within 60 days but filed 368 days of delay. He further stated that the appeal of the assessee was dismissed exparte by the Ld. NFAC. She had not received the message and as she was not able to access the email. The assessee in December, 2024 approached the ld. AR regarding the scheme of the Vivad Se Vishwas (VSVS) at that time she came to know that the appeal has already been decided. The assessee has shown the sufficient cause not to file the appeal within time. We find merit of the contention of the assessee, and condoned the delay in filing the appeal and admit the appeal for adjudication on merits.
The brief facts of the case are that the information received from the SRO-iv Ghaziabad that the assessee has sold immovable property of sale consideration for Rs. 80,00,000/-on 25-04-2011 and also purchased immovable property of Rs. 55,50,000/- jointly with Smt. Promila Singh on 04-07-2011 during the A.Y. 2012-13. The assessee has not filed the ITR during this year. Notice was served upon the assessee u/s 148 of the Act after recording the reasons and obtaining the prior permission from the Pr. Commissioner of Income Tax. Again notice under section 141(1) of the Act was issued but no reply filed by the assessee. The Assessing Officer completed the assessment after making the addition of Rs. 1,09,59,250/-.
Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. NFAC who vide his order dated 20- 12-20223 dismissed the appeal. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal.
ld. AR of the assessee submitted that the lower authorities passed the exparte orders. He also submitted that the opportunity of the being heard be provided to the assessee. Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the authorities.
We have heard the parties and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. NFAC and the AO the assessee did not file her submissions, for which the AO completed the assessment exparte and the appeal was also dismissed in non-compliance by the Ld. NFAC.
Since in the instant case both the lower authorities passed the exparte order. The Ld. NFAC has dismissed the appeal in non-compliance. 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 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.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court 21.08.2025.