PARVINDAR SINGH,JABALPUR vs. ASSITANT COMMISSIONER OF INCOME TAX , CIRCLE 2(1) JABALPUR, JABALPUR
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Income Tax Appellate Tribunal, “DB” BENCH, JABALPUR
आदेश / O R D E R
PER PAVAN KUMAR GADALE JM:
The assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC)/CIT(A) passed u/sec 143(3) and u/sec 250 of the Act.
At the time of hearing, the Ld.AR of the assessee submitted that there is a delay of 25 days in filing the
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appeal before the Hon’ble Tribunal and filed an application for condonation of delay. Whereas, the facts mentioned are reasonable and the Ld.DR has no specific objections. Accordingly, condone the delay and admit the appeal. The assessee has raised the following grounds of appeal:
On the facts and the circumstances of the case Hon’ble CIT(A) erred in passing Ex-party order especially in circumstances when the dates fixed for hearing were majorly in corona period & assessee mother was seriously ill who ultimately passed away in March 2023.
On the facts circumstances of the case Hon'ble CIT(A) erred in confirming the addition of Rs. 7,20,633,(out of Rs. 29,23,904 was made by AO in assessment) especially in the circumstances when the addition of Rs.5,06,033/- (out of Rs.7,20,633/-) was on adhoc basis & being against decision of Hon'ble ITAT Jabalpur bench in case of Ganesh Pratap Singh v ACIT ITA no 214/JAB/ 2013.
The appellant craves leave to add or amend any ground of the appeal.
The brief facts of the case are that, the assessee is engaged in the business of Alcoholic/Wine & Hire Truck and Mines Construction. The assessee has filed the return of income for the A.Y 2013-14 on 07.10.2013 disclosing a total income of Rs.46,44,650/-. Subsequently, the case was
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selected for scrutiny under CASS (i) Due to capital gains consideration disclosed in the ITR is less than sale of property reported in AIR and (ii) Large cash deposits. The Assessing Officer(A.O) has issued the notice u/sec 143(2) and U/sec142(1) of the Act. In compliance to the notice, the Ld. AR of the assessee appeared from time to time and submitted the details. The AO on perusal of the financial statements found that the assessee has declared net profit @ 4.09% on the turnover. Further the assessee has sold the immovable property for a consideration of Rs.13 lakhs, whereas the market value or value as per Sec 50C of the Act is at Rs.78,07,000/- and the assessee has purchased the said property on 26.10.2009 from Shri Satpal Daryani for Rs.12 lakhs and the profit on sale of property is liable for taxation and the disputed property was sold on 21.03.2013 in F.Y 2012-13. The A.O has dealt on the reasons for the sale of property below the market value and the submissions of the assessee. But the A.O was not satisfied with the explanations and computed the long term capital gains of Rs.29,23,904/- and assessed the total income of Rs.75,68,560/-and passed the order u/sec 143(3) of the Act dated 18.03.2016.
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Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance/submissions by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal.
At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the submissions made in the assessment proceedings.The assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Contra the Ld.DR relied on the order of the CIT(A).
We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance/submissions in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is
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not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on various dates referred at Para 6.1 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record When a query was raised to Ld.AR for the reasons for non appearance before the CIT(A), it was submitted that due to serious illness of the assesses mother there is no compliance by the assessee. Whereas the assessee has raised grounds of appeal challenging the addition of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the Assessing Officer to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. Accordingly, allow the grounds of appeal of the assessee for statistical purposes.
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In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced under Rule 34(4) of the Income Tax Appellate Tribunal Rules, 1963.
Sd/- Sd/- (OM PRAKASH KANT) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER
Mumbai, Dated 09.10.2023
KRK, PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent The CIT (Judicial) 3. 4. The PCIT DR, ITAT, Jabalpur 5. Guard File 6. आदेशानुसार/BY ORDER, स�या�पत ��त //True Copy//
( Asst. Registrar) ITAT, Jabalpur
