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Facts
The assessee, a senior citizen, was subjected to re-assessment proceedings for sale of immovable property. The assessee failed to comply with notices and did not file a return. The Assessing Officer made an addition. The CIT(A) dismissed the appeal for non-compliance. The assessee claimed to be illiterate and unaware of notices due to COVID-19.
Held
The Tribunal observed that the assessee is an illiterate senior citizen and might have been unaware of the notices. Considering the interest of justice, the case was remitted back to the CIT(A) for a denovo adjudication, allowing the assessee to present evidence.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal for non-compliance without adjudicating on merits, especially when the assessee claimed to be an illiterate senior citizen unaware of notices due to pandemic?
Sections Cited
144, 147, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
This appeal filed by the assessee pertaining to the assessment year 2011-12 is directed against the order dated 21.02.2025 of National Faceless Appeal Centre (NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Assessment Order dated 17.12.2018 passed u/s.144 r.w.s.147 of the Act.
When the appeal was called for, none appeared on behalf of the assessee despite due service of hearing. With the assistance of ld. Departmental Representative and on perusal of record, I observe that the impugned order is exparte and ld.CIT(A) has dismissed the assessee’s appeal for non-compliance without adjudicating on merits of the case. Ld. Departmental Representative raised no objection is the issues on merits are remitted back to the file of ld.CIT(A) for one more found of adjudication.
I have heard the ld. Departmental Representative and perused the record placed before me. I observe that the assessee who is a senior citizen was subjected to re-assessment proceedings u/s.144 r.w.s.147 of the Act on the basis of information available on AIMS/ITS data about entering into transaction of sale of immovable property worth Rs.1.31 crore along with 5 other persons. Assessee failed to make any compliance to various statutory notices and even did not file the return of income also. Ld. Assessing Officer accordingly concluded the re-assessment proceedings making addition of 1/6th share of Rs.1.31 crore as the income from long term capital gain at Rs.21,83,333/- in absence of any proof of cost of acquisition of the land sold during the year. Though the assessee preferred appeal before ld.CIT(A) on 31.01.2019 but thereafter first and second notice of hearing issued on 29.03.2021 and 12.03.2022 fall during covid-19 pandemic outbreak period prevailed across the country and the assessee failed to appear. After a lapse of 2 ½ years ld.CIT(A) again issued few notices but then concluded the proceedings for non-compliance of the assessee observing that assessee failed to discharge the burden of proof and confirmed the addition made by the AO.
In the appeal filed before this Tribunal, assessee has raised various grounds and in Ground No.2 it is stated that assessee is an illiterate senior citizen who is not well versed to handle e-mail id and therefore was unaware of the notices of hearing issued by ld.CIT(A). Considering this fact and also observing that assessee failed to place any evidence of the cost of immovable property sold during the year as well as the nature of transaction of sale of immovable property before the lower authorities, I in the interest of justice and fair to both the parties deem it to be a fit case to remit the issues raised on merit to the file of ld.CIT(A) for denovo adjudication. Ld.CIT(A) may call for a remand report from the Jurisdictional Assessing Officer and after considering the submissions of the assessee decide in accordance with law. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 20th day of June, 2025.