ALPESHKUMAR ANGATSINH BARIA,GODHRA vs. INCOME TAX OFFICER, WARD 1, GODHRA, GODHRA

In this case, the Assessing Officer (in short ‘the AO’) has reopened the case u/s 148 of the Act to examine the tax liability u/s 56(2)(x) of the Act on purchase of immovable property. During the course of assessment proceeding, the assessee neither appeared nor submitted any reply in response to notices u/s 142(1) or u/s 144(1) of the Act to explain the source of investment of Rs.1,07,27,705/- on purchase of property and also on the variation of Rs.44,68,213/- between the value adopted by the Stamp Duty Authority and the purchase deed value. Accordingly, AO passed an ex parte order on 18.03.2024 u/s 147 r.w.s. 144 r.w.s. 144B of the Act, by making addition u/s 69 of the Act of Rs.1,07,27,705/- as unexplained investment, and u/s 56(2)(x) of the Act of Rs.44,68,213/- treating the difference in purchase value between the purchase deed and Stamp Duty Authority, as income of the assessee. Further, the AO initiated the penalty proceeding u/s 271AAC, 270A and 272A(1)(d) of the Act.

The CIT(A), NFAC, Delhi, similarly passed the appeal order u/s 250 of the Act, ex parte, confirming the additions of the AO, in

There is a delay of 165 days in filing the present appeal. A separate application for condonation of delay has been filed, wherein, it has been pleaded that the assessee is engaged in the business of providing labour service and have agricultural income. The assessee is also a partner in Partnership Firm “Shree Sajjan Developers”. The assessee is 12th Std. passed and he has not worked on computer and he was also not aware about working on the Income Tax Portal. Hence, the assessee requested his partner Shri Nitin Chandresh Jain to register his Email ID nitin4790@gmail.com and Mobile number on ITD Portal in assessee’s account. The Ld. CIT(A) had issued 4 notices, but the notices were gone into SPAM folder to assessee’s partner email ID, therefore, the matter could not be represented properly before the lower authorities. Further, the assessee received a show cause notice regarding imposition of penalty u/s 271AAC(1), he approached his Chartered Accountant (in short ‘CA’) and on his request, CA had logged to IT Portal and found that the appeal was dismissed by the Ld.CIT(A). Thus, the assessee could not file the appeal against the impugned CIT(A) order within the statutory time limit. The assessee, in fact, after coming to know about the dismissal of appeal ex-parte, has immediately filed the appeal.

Ld. Counsel for the assessee has further invited our attention to the impugned assessment order as well as the order of the Ld. CIT(A), and has submitted that the orders of both the lower authorities are passed ex parte against the assessee. The Ld. Counsel has submitted that the assessee could not receive notices and also could not receive any information about the ongoing proceedings and consequently he did not appear for hearings before both the lower authorities. The Ld. Counsel further pleaded that the assessee has a fair case on merits, and submitted that the assessee may be given an opportunity to present his case before the AO. The Ld. DR, on the other hand, has relied upon the findings of the lower authorities.

Considering the rival submissions, in our considered view, the interests of justice will be well served, if the assessee be given an opportunity to present his case before the Ld.AO. So far as the negligence on the part of the assessee, in not properly representing his case before the lower authorities is concerned, the asessee can be burdened with reasonable costs of Rs.10,000/- to be deposited in the Prime Minister’s National Relief Fund. The assessee will deposit the aforesaid cost amount within 60 days from the receipt of copy of this order and will produce the proof of such deposit before the Ld.AO. Subject to the fulfilment of the aforesaid condition, the delay in filing the present appeal is hereby condoned, the impugned order of the CIT(A) is set-aside and the

In the result, the appeal of the assessee is treated as allowed for statistical purposes.