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Facts
The assessee entered into a development agreement which was erroneously treated as a sale of immovable property, leading to additions. The assessee claimed to be unaware of the faceless assessment proceedings and notices issued through the ITBA portal.
Held
The Tribunal held that the assessee was not aware of the faceless assessment proceedings and the CIT(A) passed an ex-parte order without considering the adjournment. Therefore, the matter was remitted back to the AO for fresh assessment.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without considering the assessee's submissions and adjournment request, despite the assessee's alleged unawareness of the faceless assessment proceedings.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, ‘D’ BENCH
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 13/12/2024 passed by NFAC, Delhi for the quantum of assessment passed u/s.147 r.w.s. 144 for the A.Y.2019-20.
Before us ld. Counsel submitted that assessee is an individual who had entered into a development agreement with the builder which was erroneously considered to be sale of immovable property and accordingly, additions have been Dilip Namdeo Bhoir made of Rs.2,13,15,000/- on account of sale of immovable property under the head ‘long term capital gain’ despite assessee has not sold any such property and has merely entered into a development agreement. He further stated that since assessee was not well versed with faceless system nor was he aware of any notices being sent through ITBA portal, therefore, he could not respond to any such notices nor he was aware of any such re-assessment proceedings being initiated. Before the ld. CIT(A) assessee sought for adjournment. However, the same was not considered and ld. CIT(A) too has passed exparte order without deciding it on merits. Therefore, in the interest of justice, he submitted that matter should be restored back to the file of the ld. AO.
Ld. DR also is not having any objection if the matter is remanded back to the file of the ld. AO.
After considering the aforesaid submissions and looking to the facts which has been narrated before us, it is seen that the notices sent and reflected in the income tax portal was not responded as assessee was not aware of that assessment proceedings will be conducted in faceless manner and notices would be sent through ITBA portal because assessee was illiterate and had not filed the return of income. Even before the ld. CIT(A), the authorized representative of the assessee had filed the adjournment on the income tax portal, however, the ld. CIT(A) without considering the same has passed an exparte order on 13/12/2024. Accordingly, in the interest of justice and to examine the contention of the assessee that Dilip Namdeo Bhoir there was no sale of immovable property during the year and it was only development agreement, ld. AO is directed to examine his contention and pass afresh assessment order. Assessee is also directed to participate in the proceedings and substantiate his case before the ld. AO. Accordingly, the matter is remitted back to the file of the ld. AO to decide in accordance with law after giving due opportunity of hearing to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on February, 2025.