Loading judgment…
Facts
The assessee, an individual, did not file his return of income for AY 2013-14. Information regarding the sale of a property was received, and the Assessing Officer treated the assessee's share of undisclosed income as capital gain. Despite opportunities, the assessee did not provide satisfactory replies or documents.
Held
The Tribunal set aside the order of the CIT(Appeals) and remitted the matter back to provide one more opportunity to the assessee to be heard, emphasizing cooperation from the assessee.
Key Issues
Whether the CIT(Appeals) considered the case on merit and whether the assessee was provided adequate opportunity of being heard to meet the principle of natural justice.
Sections Cited
148, 142(1), 143(3), 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Sanjay Awasthi
Per Duvvuru RL Reddy, Vice-President(KZ):- 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 14th December, 2022 for the assessment Year 2013-14.
(A.Y. 2013-2014) Pratul Saha 2. Brief facts of the case are that the assessee is an individual, who did not file his return of income for A.Y. 2013-14. Information received from JDIT(OSD)(I&CI), Circle-2(1), Kolkata that the assessee has jointly sold property in consideration of Rs.4,70,00,000/- (one-nineth share) on 16.10.2012. The Addl. Dist. Sub-Registrar has determined the fair market value of the property for levying stamp duty at Rs.22,02,77,355/-. Since the assessee did not file his return of income, hence the tax prospect in the hands of assessee arising out of the above capital gain had not been disclosed by the assessee. Therefore, ld. Assessing Officer treated, being one nineth share of assessee, undisclosed income at Rs.2,44,75,262/- chargeable to tax in the hands of assessee. In reply to Notice under section 148, the assessee filed return of income on 28.03.2019 declaring total income of Rs.10,66,990/- as capital gain. Thereafter notice under section 142(1) of the Act was issued by the ld. Assessing Officer to the assessee on different dates alongwith questionnaire requiring information/details, but the assessee has not furnished any satisfactory reply/ documentary evidence. Finally, ld. Assessing Officer assessed income at Rs.2,78,68,430/- under section 143(3) of the Income Tax Act, 1961.
On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The assessee did not submit documents in support of his claim inspite of providing multiple opportunities to the assessee. Thereafter the ld. Commissioner (Appeals) had no other option except passing the order on merits based on the material available on record. The ld. CIT(Appeals) dismissed the
On being aggrieved, the assessee preferred an appeal before the ITAT. It was the submission of the assessee that ld. CIT(Appeals) did not consider his case on merit and just upheld the order passed by the ld. Assessing Officer. He pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals).
On the other hand, ld. D.R. brought to our notice that the assessee did not participate during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order under section 147 read with section 144 of the Act. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, inspite of service of notice, the assessee did not turn up to substantiate his case before the Tribunal. Therefore, he pleaded to uphold the orders passed by the revenue authorities.
We have heard both the sides and perused the material available on record. Considering the facts and circumstances of the case, we are 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 (A.Y. 2013-2014) Pratul Saha the same breath, we 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 based on the materials available on the record. 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 28/01/2025.