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Facts
The assessee, an individual engaged in Real Estate, did not file a return for AY 2014-15. The AO reopened the assessment under Section 147 based on information about a land sale, making an addition of Rs. 31,20,000/-. The CIT(A) upheld this addition.
Held
The Tribunal found that the CIT(A) passed the order without giving proper opportunity to the assessee. Therefore, in the interest of natural justice, the appeal was remitted back to the CIT(A) for a fresh adjudication after providing the assessee an opportunity of hearing.
Key Issues
Whether the CIT(A) erred in upholding the addition without providing proper opportunity to the assessee? Whether the gain from sale of land is amenable to income tax?
Sections Cited
143(3), 147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.10.2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Income-tax Act, 1961 (hereinafter “the Act”) on 30.12.2017.
There is a delay of 359 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The assessee is an individual engaged in the business of Real Estate along with his father Shri T.Pandirajan. The assessee did not file his return of for the relevant Assessment Year. The A.O Based on information that the assessee sold a land at Rs. 50,30,000/- on 16.08.2013, which he had purchased at Rs. 4,95,000/-, but not filled return of income hence, reopened the assessment u/s. 147 of the Act .
In response to notice u/s. 148 of the Act, the assessee has filed his return of income on 16.10.2017, showing income of Rs. 3,19,670/- and agricultural income of Rs.3,05,567. The A.O made addition of Rs.31,20,000/- as profit earned from the sale of land as assessee was engaged in the business of land dealing. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). On appeal, the Ld. CIT(A) upheld the addition made by the A.O.
The Ld. Authorized Representative (A.R) of the assessee has submitted that the land purchased and sold was agriculture land, therefore the gain is not amenable to income tax. The Ld A.R further submitted that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) to explain the case , therefore, the case may be remitted back to the Ld. CIT(A) for fresh consideration in interest of justice.
The Ld. Departmental Representative has relied on the orders of the authorities below.
6. We have heard the rival submissions, and perused the materials available on record. We find that Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. We are therefore of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law. We also direct the Assessee to appear before the Ld. CIT(A) on the date of hearing without fail.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 12th March, 2025.