B.R. CONSTRUCTION,KOLKATA vs. I.T.O., WARD - 25(1), KOLKATA

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ITA 2534/KOL/2024Status: DisposedITAT Kolkata24 April 2025AY 2020-2021Bench: SHRI PRADIP KUMAR CHOUBEY (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)7 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, finding sufficient cause due to communication issues. It set aside the orders of both the CIT(A) and the AO, remitting the matter back to the AO for a fresh assessment (de novo). The ITAT directed the AO to provide the assessee a proper opportunity of being heard.

What were the facts?

The assessee, B.R. Construction, appealed against an assessment order for AY 2020-21 which was upheld by the CIT(A). The appeal to the ITAT was filed with a delay of 165 days, citing miscommunication and technological challenges. The substantive issue involved an addition under Section 56(2)(x)(b)(B), as the AO treated a development agreement with Thika Tenants/Principals as an 'Investment in Immovable Property' instead of a contractual arrangement for development rights.

What were the issues?

1. Condonation of delay in filing the appeal before the ITAT. 2. Whether a development agreement constitutes an 'Investment in Immovable Property' under Section 56(2)(x)(b)(B). 3. Alleged violation of natural justice by CIT(A) in passing an ex-parte order without considering substantive legal issues.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 56(2)(x)(b)(B)

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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA

Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA

order

: April 24th, 2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2020-21 dated 15.04.2024, which has been passed against the assessment order u/s 143(3) of the Act, dated 21.09.2022.

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