BHAGVATIBEN NAVNITBHAI PATEL,BHANER-KATHLAL vs. THE INCOME TAX OFFICER, WARD-1, NADIAD

The assessee has raised the following grounds of appeal:

The facts of the case are that assessee has not filed the 'Income Tax Return' for the A.Y. 2018-19. As per information, the assessee had sold an immovable property in which the sale consideration share of the assessee was of Rs. 32,14,289/- and had deducted TDS on the sale consideration on the sale of immovable property at Rs. 75,00,000/-. During the assessment proceedings the assessee was issued show cause notice asking as to why the amount of Rs. 1,07,14,289/- should not be treated as Short Term Capital Gain of the assessee from the sale of immovable property. However, the assessee had not responded to any of the statutory notices. Therefore, the AO had added the total amount of sale consideration of Rs. 1,07,14,289/- as Short Term Capital Gain to the total income of the appellant for the A.Y. 2018-19.

Aggrieved by the Assessment Order, the assessee filed an appeal before the Ld.CIT(A), who dismissed the appeal of the assessee.

Heard the argument of both the parties and perused the material available on record.

On perusal of the records, it is observed that the assessee was afforded adequate opportunities of being heard by the learned CIT(A) on 01.11.2023, 15.12.2023 and 25.01.2024 to furnish the requisite details, clarifications and evidences in support of the grounds raised in appeal. However, despite being granted sufficient opportunities, the assessee remained non-compliant and failed to furnish the necessary details and supporting evidences. Consequently, the learned CIT(A), on the basis of the material available on record, upheld the action of the Assessing Officer and dismissed the appeal. We further observe that even during the assessment proceedings, the assessee failed to furnish any material or supporting evidence before the Assessing Officer to substantiate his claim that the amount of ₹1,07,14,289/- ought not to be assessed as Short-Term Capital Gain. During the course of hearing before us, the learned counsel for the assessee submitted that, given an opportunity, assessee shall furnish all the relevant documents, bank statements, clarifications and evidences before the Assessing Officer to substantiate his claim. Having regard to the totality of the facts and circumstances of the case, and in the interest of substantial justice, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Assessing Officer for de novo assessment. The Assessing Officer shall examine the claim of the assessee afresh after considering the documents and evidences that may be furnished by the assessee and after affording a reasonable opportunity of being heard, in accordance with law. The assessee is directed to furnish all the relevant bank statements, documentary evidences and explanations before the Assessing Officer and to extend

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