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Facts
The assessee filed an appeal against the order of the CIT(A) who confirmed the disallowance of depreciation and treated the sale of agricultural land as business income. The assessee contended that documents were filed before the CIT(A), but they were not considered.
Held
The Tribunal observed that the CIT(A) decided the case based on facts available on record as no details were filed by the assessee. However, it was noted that the appeal was initially filed in physical form, and the documents might not have been uploaded after migration to NFAC.
Key Issues
Whether the CIT(A) erred in not considering the documents filed by the assessee and deciding the case based on available facts without proper adjudication, and if the agricultural land sale constitutes business income.
Sections Cited
250, 2(14)
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Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the assessee is against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], passed under section 250 of the Income Tax Act, 1961, dated 05.09.2023 for Assessment Year 2014-15. The assessee has raised the following grounds of appeal :
1. The learned CIT(A) erred in law and on facts in confirming disallowance of depreciation of Rs.4,13,371 without affording any opportunity of being heard or furnishing any justification.
The learned CIT(A) erred in law and on facts in treating sale of agricultural land as business income by treating the said land as Business stock in Trade
The learned CIT(A) erred in law and on facts in not appreciating that the said land being agricultural land was not capital asset u/s 2(14) and did not give rise to taxable income.
The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.”
Submission of ld.AR : 2. Ld.AR submitted that ld.CIT(A) has not considered the submission filed by assessee. Ld.AR explained that assessee had filed Form No.35 before ld.CIT(A), Pune. Assessee filed letter dated 05.01.2018 along with the documents mentioned in it before ld.CIT(A). Assessee has filed copy of the acknowledgment to demonstrate the same. Assessee had filed following documents before the ld.CIT(A) :
Ledger of Agricultural Land Details of Capital gains computation Investment A/C Balance Sheet & Profit and Loss account with Computation of Income for A.Y.2014-15 Certificate of Gram-panchayat Confirmation of Sugar cone Bank Statement of PDCC Bank 7/12 Extracts Confirmation of sale sugar – come with 7/12 extracts Sale Deeds Purchase Deeds Computation of Income balance sheet & Profit & Loss Account for A.Y.2012-13 3. Ld.AR submitted that however ld.CIT(A) has not considered any of the above documents and erred in stating that no details were filed. Submission of ld.DR : 4. Ld.Departmental Representative for the Revenue relied on the order of the Assessing Officer.
Findings & Analysis : 5. We have heard both the parties and perused the records. In this case, ld.CIT(A)[NFAC] in the order dated 05.09.2023 noted that four notices dated 27.12.2020, 24.08.2021, 07.01.2022 and 02.11.2022 were served on assessee, but Assessee has not filed any details. Therefore, ld.CIT(A) decided the case based on facts available on record. However, during the hearing before us, ld.Counsel submitted copy of the Acknowledgment having Stamp of Commissioner of Income Tax (Appeals)-8, Pune dated 09.01.2018 to demonstrate that Assessee had filed a paper book containing 217 pages.
5.1 Initially, the appeal was filed in the physical form with ld.CIT(A), Pune. However, it seems that said appeal was migrated to NFAC. However, it seems that the documents filed before ld.CIT(A) in physical form were not uploaded. In these facts and circumstances of the case, we deem it appropriate to set-aside the order of ld.CIT(A) to ld.CIT(A) for denovo adjudication after providing opportunity to the assessee. Assessee shall file all necessary documents again. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 24th April, 2025.