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Facts
The assessee, an elderly lady, sold agricultural land for Rs. 64,30,000/- and received an advance of Rs. 27,00,000/- which was deposited in her bank account. The AO initiated proceedings under Section 147 and, due to non-response from the assessee, completed the assessment under Section 144. The CIT(A) upheld the assessment order after the assessee failed to respond to multiple notices.
Held
The Tribunal noted that the assessee failed to appear before the AO and CIT(A) and did not respond to notices. However, considering the facts, the Tribunal decided to restore the matter to the AO for denovo assessment after affording a reasonable opportunity to the assessee.
Key Issues
Whether the CIT(A) was justified in upholding the ex-parte assessment order when the assessee claimed non-service of notices? Whether the matter should be restored for denovo assessment?
Sections Cited
147, 148, 142(1), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2012-13) Smt. Taro, C/o J B Sharma, Advocate, 72, BMK Market, NR Hotel Hive, G T Road, Panipat, Haryana 132103 ...... अपीलाथ�/Appellant PAN: ALSPT-7680-C बनाम Vs. Income Tax Officer, Ward-1, ..... �ितवादी/Respondent Panipat, Haryana 132103 अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 22/05/2025 घोषणा क� ितिथ/ Date of pronouncement : : 22/05/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 06.05.2024, for assessment year 2012-13.
The appeal is time barred by 216 days. The assessee has filed an application seeking condonation of delay in filing of appeal supported by an affidavit. After perusing the application for condonation of delay, I am satisfied that delay in filing of present appeal is un-intentional and was for the reasons stated in the application (AY 2012-13) which appears to be bonafide. Hence, delay of 216 days in filing of appeal is condoned and appeal is admitted for hearing on merits.
Brief facts of the case as emanating from records and written submission filed on behalf of assessee are: The assessee is an old lady aged about 73 years. During the period relevant to assessment year under appeal, the assessee had sold her agricultural land situated at village Kaimla, Tehsil Gharaunda, District Karnal admiring 22 kanal 19 marla for a total consideration of Rs.64,30,000/- to Shri Devender Singh vide agreement to sell dated 24.06.2011. The assessee received Rs.27,00,000/- as advanced and deposited the same in her saving bank account no. 7092000001288 with Yes Bank, Panipat on 24.06.2011. The sale deed was executed and registered on 26.07.2011. The balance amount of consideration was received by the assessee at the time of execution of Sale Deed through cheque which was also deposited in the bank on 27.06.2011. On the basis of AIR information the AO initiated proceedings u/s. 147 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) and notice u/s. 148 of the Act was issued to the assessee on 22.03.2019. Since, the assessee failed to respond to the notice u/s. 148 of the Act and the subsequent notices u/s. 142(1) of the Act, the Assessing Officer (AO) completed the assessment u/s. 144 of the Act making addition of Rs.28,27,072/-. Against the assessment order dated 11.12.2019 passed u/s. 144/147 of the Act, the assessee filed appeal before the CIT(A). The First Appellate Authority issued multiple notices to the assessee i.e. on 11.08.2023, 02.01.2024, 01.02.2024, 20.02.2024, 04.03.2024, 21.03.2024 and 01.04.2024. Since, there was no response from the assessee to any of the notices, the CIT(A) upheld the assessment order and dismissed appeal of the assessee. Hence, present appeal by the assessee.
(AY 2012-13) 4. Per contra, Shri Manoj Kumar, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submitted that the assessee is non compliant. No return of income was filed by the assessee in response to the notice issued u/s. 148 of the Act, no reply was filed by the assessee either before the AO or the CIT(A).
Submissions made by ld. DR heard, orders of the authorities below examined. From the written submissions of the assessee it emanates that the assessee has sold agricultural land admiring 22 kanal 19 marla at village Kaimla, Tehsil Gharaunda, District Karnal. During the period relevant to assessment year under appeal, the cash deposits Rs.27,00,000/- is out of the consideration received by the assessee received on sale of land. Since, the assessee failed to appear before the AO, no documentary evidence was available before the AO to verify source of cash deposits in the bank account of the assessee. Hence, the AO was constrained to complete assessment u/s. 144 of the Act making addition of aforesaid amount. Even before the CIT(A), the assessee has failed to respond to the notices. The contention of the assessee as per written submissions filed before the Tribunal is that none appearance of the assessee before CIT(A) is on account of none service of notice.
Considering entire facts of the case and documents on record, I deem it appropriate to restore this matter back to the AO for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law.
(AY 2012-13) 7. The assessee shall provide her address/email id for service of notice to the AO within 45 days from the date of receipt of this order. The AO shall serve notice to the assessee on the address provided by the assessee. The assessee upon service of notice(s) shall respond to the same, without fail.