ARJUNSINH SOLANKI,VADODARA vs. INCOME TAX OFFICER, VADODARA

This appeal has been preferred by the Assessee against the Order, dated 02/01/2026, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 04/03/2024 passed under Section 147 r.w.s. 144 of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment year 2019- 2020. 2. The Assessee has raised the following grounds of appeal: 1.Your appellant is deprived of the effective opportunity of making any submission to CIT(A) due to reasons beyond Appellant's control thereby losing the opportunity to submit arguments in detail on merit of the case to CIT(A) Assessment Year: 2019-2020

Further, as per the valuation report of the approved valuer, the long term capital gain arrived at Rs. 2,38,648/- which is also below the basic exemption limit. Despite of that, Ld. AO determined the LTCG of Rs. 8,22,535/- without considering the adequate the cost of acquisition / indexed cost of acquisition.

Your appellant has requested to Ld. AO to provide few more days of time to engage professional person for submission of all the necessary details, documents and explanation and further requested to provide time for obtaining valuation report from registered valuer. Accordingly, with the sincere efforts, the appellant could obtain the valuation report on 20.03.2024 from Govt. approved Registered Valuer. But, Ld. AO in a hurry to close the assessment proceedings, passed assessment order u/s 147 r.w.s. 144 of the Act.

Your appellant being dissatisfied with the order passed by the Ld. AO as on 04.03.2024, prefers this appeal.

Heard both the sides and perused the material on record.

A bare perusal of Assessment Order shows that the Assessee did not file return of income for the Assessment Year 2019-2020. Reassessment proceedings were initiated in the case of the Assessee under Section 147 of the Act which culminated into passing of the Assessment Order, dated 04/03/2024, under Section 147 read with Section 144 before the Act. The Assessing Officer brought to tax Long Term Capital Gains of INR. 8,22,535/- in the hands of the Assessee.

Before the Learned CIT(A), the Assessee filed application for admission of additional evidence. In the statement of fact it was explained that the Assessee was a farmer and along with 11 co-owners the Assessee had sold his share in the agricultural land which has resulted in capital gains which were below the taxable limit and therefore, no income tax return was filed by the Assessee. It is the case of the Assessee that the Assessee had also filled a valuation report to support the grounds

When the appeal was taken up for hearing the Learned Authorised Representative for the Assessee fairly stated that the Learned CIT(A) has dismissed the appeal as the Assessee had failed to respond to the notice(s) of hearing issued by the Learned CIT(A). However, it was pointed out that the Learned CIT(A) has dismissed the appeal without taking into consideration the additional evidence furnished by the Assessee including the valuation report. It was submitted that during the assessment proceeding sufficient time was not granted for furnishing the valuation report.

We find the above averment made by the Learned Authorised Representative for the Assessee to be factually correct. Vide show cause dated 28/01/2024, the Assessee was granted time till 12/02/2024 to file response and thereafter, on 04/03/2024, the Assessment Order was passed. We note that almost entire amount of Assessee’s share in the consideration received from sale of agricultural land (along with 11 other co-owners) has been brought to tax by the Assessing Officer as Long Term Capital Gains. Perusal of record shows that the Assessee filed application for admission of additional evidence before the Learned CIT(A). In Paragraph 3 of the order impugned, the Learned CIT(A) has reproduced the ‘Statement of Facts’, wherein the fact of filing application for admission of additional evidence has been recorded. However, the Learned CIT(A) has not considered the said application filed by the Assessee. Given the aforesaid, we deem it appropriate to remand the issue of computation of Long Term Capital Gains and the consequential determination of tax liability of the Assessee for the relevant assessment year back to the file of the Assessing Officer for denovo adjudication. The Assessee would be at 3 Assessment Year: 2019-2020

In result, appeal preferred by the Assessee is allowed for statistical purposes

""यथ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) / The CIT(A) 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड"फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.