PANKAJ SINGH,FARIDABAD vs. INCOME TAX OFFICER, WARD-1(4), FARIDABAD

It is observed that the assessee has filed the present appeal belatedly beyond the period of limitation for which the assessee has filed application along with affidavit for condonation of the said delay. Upon perusal of the same and

The assessee has raised the following grounds of appeal:- “1. That on the facts and in the circumstances of the case, the order passed by the Ld. CIT(A)NFAC dated 10.01.2025 is bad in law and without jurisdiction. 2 That the NFAC grossly erred in dismissing the appeal ex-parte without any adjudication on merits. 4. That the Ld. Authorities below erred in treating the Appellant as owner of the property and making addition of Rs. 1,10,16,000/- u/s 69 when the property was actually purchased and funded entirely by the Appellant's father Sh. Nihal Singh and the sale deed was executed in the Appellant's name only due to the father's incarceration. 5 That the Ld. Authorities below failed to make any inquiry from the father Sh. Nihal Singh despite his detailed affidavit and list of property sales filed before the authorities. The Hon'ble ITAT had specifically directed verification of the father's sources; the same was not done. 6. That the Appellant had no independent source of income at the age of 25 years and could not have made cash investment of Rs. 1.10 Cr. The addition defies the principle of probability. 7. That the Appellant craves leave to add, delete, amend or modify any of the above grounds of appeal at the time of hearing.”

The assessee’s case was reopened based on the information that the assessee had purchased property situated at H. No. 864, Sector-14, Faridabad measuring 350 Sq.Yards on 18/09/2007 for a total consideration of Rs. 1,02,00,000/-, which was alleged to have been paid in cash and stamp duty was Rs. 8,16,000/-. Notice u/s. 148 of the Income Tax Act, 1961 was issued to the assessee on 20/03/2013 and in response to the same the assessee failed to file his return of income. Further,

Aggrieved with assessment order dated 28/01/2014 passed by the JAO, the assessee filed appeal before the Commissioner of Income Tax (Appeals), Faridabad (‘Ld CIT(A)’, for short). The Ld. CIT(A) dismissed the assessee’s appeal vide an ex parte order dated 02/03/2016 for the reason that the assessee was not able to substantiate the source of the funds for the purchase of the property.

Aggrieved with order u/s 250(6) of the Income Tax Act, 1961 passed by the CIT(A), the assessee filed second appeal before the Tribunal and the Tribunal vide order in ITA No.2579/Del/2016 dated 31/01/2022, restored the matter back to the file of Ld. AO to pass orders afresh, in accordance with law, after giving opportunity to the assessee. 7. In the second round of assessment proceedings, the AO initiated the proceeding u/s. 144 read with section 254 of the Act and a notice u/s. 142(1) of the Act was issued on 28/09/2022, which was dully served upon the assessee.

During the appellate proceedings, various notices were issued by the Ld.CIT(A) which were not complied. In view of this the Ld. CIT(A) dismissed the appeal filed by the assessee upholding the addition made by the Ld. AO since the assessee failed to submit any submission or evidence during appellate proceedings, though sufficient opportunities were granted.

Aggrieved, the assessee is in appeal before us challenging the order of the Ld. CIT(A).

We have heard the rival submissions and perused the material available on record. It is observed that the assessee has been non-compliant during the proceedings before the Ld. AO as well as before the Ld. CIT(A) and has also failed to substantiate the source of funds for purchase of the property by furnishing requisite documents as called for by the Ld. AO and the CIT(A). Before us, the Ld. AR for the assessee prayed that the assessee be given one more opportunity to present his case before the Ld. CIT(A) stating that the assessee has got a good case on the merits.

On the above facts of the case, we deem it fit to extend the assessee with one more opportunity to present his case before the Ld. CIT(A) by adhering to the principles of natural justice and in the interest of justice dispensation. The assessee is directed to strictly comply with the proceedings before the Ld. CIT(A) who is to adjudicate all the grounds raised by the assessee, both legal as well as on the merits, in accordance with the provisions of law and on the merits of the case. The grounds of appeal raised by the assessee are hereby allowed for statistical purposes

In the result, the appeal filed by the assessee is allowed for statistical purposes as per the above observations.

In the result, the appeal is allowed for statistical purposes.