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Facts
The assessee, an individual, did not file an income tax return. The AO reopened the assessment under Section 147 on the ground that the assessee sold immovable property for Rs. 45,00,000/- against a guideline value of Rs. 60,00,000/-. The AO assessed Short-Term Capital Gain of Rs. 59,90,000/-. The CIT(A) dismissed the appeal ex-parte due to non-compliance with notices.
Held
The Tribunal found that the CIT(A) dismissed the appeal solely on the ground of non-compliance without adjudicating on merits. To provide justice, the Tribunal set aside the orders of the AO and CIT(A) and remitted the matter back to the CIT(A) for a decision on merits after providing an opportunity of hearing to the assessee.
Key Issues
Whether the CIT(A) should have decided the appeal on merits rather than dismissing it ex-parte due to non-compliance, and whether remitting the case back to the CIT(A) is appropriate for a just decision.
Sections Cited
147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 07.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 & 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 17.05.2023.
Sahayarajan Anthonypackiam :- 2 -:
The assessee is an individual and has not filed the return of income for the relevant assessment year. The A.O reopened the assessment u/s 147 of the Act on the ground that the assessee had sold immovable property for a consideration of Rs. 45,00,000/-, whereas the guideline value of the said property was Rs. 60,00,000/-.
Accordingly, the AO completed the assessment u/s 147 of the Act and assessed Short-Term Capital Gain of Rs. 59,90,000/-. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte due to non-compliance with the notices issued.
The Ld. A.R has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore, the case may be remitted back to the Ld. CIT(A) for fresh consideration in the interest of justice.
The Ld. Departmental Representative (DR), relied on the orders of lower authorities.
We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find Sahayarajan Anthonypackiam :- 3 -: that the appeal was dismissed solely on the ground of non-compliance by the assessee, without dealing with the merits of the addition made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of June, 2025 at Chennai.