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Facts
The assessee filed a return of income which was processed under section 143(1). Subsequently, the assessment was reopened under section 147 based on information received, and a notice under section 148 was issued. The assessee did not file a fresh return. The Assessing Officer assessed a deemed income of Rs.27,74,911/- for alleged undervaluation of a property purchased under a housing scheme.
Held
The Tribunal condoned the delay in filing the appeal, noting that the Revenue did not appear. The Tribunal set aside the order of the CIT(Appeals) to meet the principle of natural justice and remitted the matter back to the CIT(Appeals) with a direction to provide another opportunity of being heard to the assessee.
Key Issues
Whether the CIT(Appeals) order dismissing the appeal ex-parte without providing adequate opportunity to the assessee is sustainable? Whether the principle of natural justice was violated?
Sections Cited
147, 148, 143(1), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2017-2018 Ayaz Ahmed,…………………………….……..……Appellant 25/1/1A, Darga Road, Kolkata-700017 [PAN:ADCPA3744N] -Vs.- Income Tax Officer,……………………….……...Respondent Ward-32(1), Kolkata, 10B, Middleton Row, 2nd Floor, Kolkata-700071 Appearances by: Shri R. Chatterjee, A.R. and Firoz Uddin, A.R., appeared on behalf of the assessee N o n e, appeared on behalf of the Revenue Date of concluding the hearing: March 19, 2025 Date of pronouncing the order: March 20, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 27th March, 2024 passed for Assessment Year 2017-18.
The appeal is time barred by 116 days in filing the appeal by the assessee. However, the assessee did not file any condonation petition. By considering the totality of the facts and circumstances (A.Y. 2017-2018) Ayaz Ahmed of the case, I condone the delay and proceed to decide the appeal on merit. The appeal is admitted.
None appeared on behalf of the Revenue at the time of hearing. Therefore, I have decided to dispose of the appeal after hearing the ld. Counsel for the assessee and the material available on record.
Brief facts of the case are that the assessee is an individual, who filed his return of income on 30.03.2018 disclosing total income of Rs.9,13,150/-, which has been processed under section 143(1) on 10.01.2019 where a demand of Rs.9,310 has been raised. Based on the information received from DIT (Intelligence & Criminal Investigation), Kolkata, the assessment was reopened under section 147 after taking approval from the appropriate authority. Notice under section 148 was issued and duly served on the assesee requiring him to submit the return within the due time. But the assessee did not submit fresh return in response to notice under section 148. Accordingly notice under section 142(1) alongwith list of requisition dated 30.11.2019 was served on the assessee asking him to produce the relevant documents. However, there was no compliance from the side of assessee. The ld. Assessing Officer assessed the deemed income of Rs.27,74,911/- of the assessee for less stamp duly value paid for purchasing of house property from West Bengal Minorities Development & Finance Corporation by way of lottery draw under Housing Scheme Project.
(A.Y. 2017-2018) Ayaz Ahmed 5. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).
The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate her claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 27th March, 2024.
On being aggrieved, the assessee preferred an appeal before the ITAT.
At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) passed an ex-parte order by upholding the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals).
I have perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record.
(A.Y. 2017-2018) Ayaz Ahmed Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 20/03/2025.