MANGU SINGH THROUGH LEGAL HEIR RAJENDRA TYAGI,GHAZIABAD vs. ITO,WARD-1(4), GHAZIABAD

PER Ms. MADHUMITA ROY, JM: The instant appeal, preferred by the assessee, is directed against the order dated 25.06.2024 passed by the Ld. CIT(A)/National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 28.11.2019 passed by the Income Tax Officer, Ward 2(1)(4), Ghaziabad, under Section 147 read with Section 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2012-13. 2. The assessee has raised following grounds of appeal: “1. That on the facts of the case, in law and under the circumstances, the Commissioner of Income Tax (Appeal) National Faceless Appeal Centre,

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(NFAC), Delhi erred in framing assessment by making addition of Rs.
3,81,69,800/- (1/6th of Rs. 13,34,64,960 + 2,98,28,240) being the gross sale value of the land as short-term capital gain. The assessment framed by making an addition of the gross sale value as short-term capital gain is wrong, unjustified, illegal, not judicious and thus bad in law.
2. That on the facts of the case, in law and under the circumstances, the Commissioner of Income Tax (Appeal) National Faceless Appeal Centre
(NFAC), Delhi erred in framing assessment by making addition of Rs.
3,81,69,800/- being the gross sale value of the land as short-term capital gain. Since the land is inherited from forefathers, having no cost of acquisition, the sale value is not taxable. The assessment framed by making an addition of the gross sale value as short-term capital gain is wrong, unjustified, illegal and bad in law.
3. That on the facts of the case, in law and under the circumstances, the Commissioner of income Tax (Appeal) National Faceless Appeal Centre
(NFAC), Delhi erred in framing assessment by making addition of Rs.
3,81,69,800/- being the gross sale value of the land as short-term capital gain, because alternatively, the land being held for a period of more than three years should be assessed as long-term capital gain as provided under the law. The assessment framed by making an addition of the gross sale value as short-term capital gain without applying judicious mind is wrong, unjustified, illegal and bad in law.
4. That the appellant craves to add, alter, amend, substitute, delete and modify any or all the grounds, which without prejudice to one another may be required so, before or at the time of hearing of the appeal.”
3. None appeared on behalf of the assessee at the time of hearing of the appeal despite issuance of notice for hearing. After hearing the Ld. DR and perusing the materials available on record, we proceed to dispose of the appeal in absence of the assessee.
4. It is noticed that the Ld. First Appellate Authority/NFAC has proceeded with the appeal and finalized the same ex parte, qua the assessee. The stand of the assessee as is revealed from the statement of facts filed with Form 36 that no notice issued by the Ld. CIT(A)/NFAC was ever served in the name of the assessee who

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died on 09.05.2023 and the present appeal has been filed by the legal heir of the deceased. Considering this peculiar aspect of the matter this Bench deems it fit and proper to grant further opportunity of being heard to the assessee to represent its case before the First Appellate Authority effectively in order to prevent the miscarriage of justice. Thus, this appeal is disposed of by remitting the issue to the file of the Ld. CIT(A) for consideration of the same afresh and to pass a reasoned order by granting adequate opportunity of being heard to the assessee (the legal heir of the deceased assessee) and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. It is also made clear that in the event the assessee does not cooperate with the Ld. CIT(A), the said authority would be at liberty to pass orders as it deems fit and proper, strictly in accordance with law. We order accordingly.
5. In the result, assessee’s appeal is allowed for statistical purposes
Order pronounced in open court on 07.05.2025. (MANISH AGARWAL)
JUDICIAL MEMBER

Dated: 15.05.2025. *MP*