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Facts
The assessee is an individual engaged in milk trading and farming. The case was reopened under Section 147 after the original assessment under Section 143(3). The addition was mainly on account of long-term capital gains, which the assessee claims pertains to agriculture land and thus not a capital asset.
Held
The Tribunal noted that the assessee did not appear for the hearing. Considering the assessee's past attempt to opt for the Vivad Se Vishwas scheme and non-compliance with notices, the Tribunal decided to remit the issue back to the CIT(A) for a reasonable opportunity to the assessee.
Key Issues
Whether the addition made on account of capital gains on agriculture land is justified, and whether the reopening of the case under Section 147 was proper.
Sections Cited
147, 143(3), 250, 54B, 54F
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Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD & MS. ASTHA CHANDRA
Assessee by : None Revenue by : Shri Akhilesh Srivastava, Additional CIT Date of hearing : 23.04.2025 Date of : 28.04.2025 pronouncement आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee pertaining to Assessment Year 2011-12 is directed against the order dated 18.11.2024 passed by Additional./JCIT(A), Nashik u/s 250 of the Income-tax Act, 1961 which in turn is arising out of order u/s 143(3) r.w.s. 147 dated 19.12.2016
Assessee has raised following grounds of appeal:- 1) On the facts and in the circumstances of the case and in law, the Learned CIT(A) is not justified in confirming the addition of Rs. 1697909/-without appreciating the fact that the said Agriculture Land is not a Capital Asset. The addition may please be deleted. 2) On the facts and in the circumstances of the case and in law, the Lower Authority has reopened the case U/s.147 when the original order was passed U/s. 143(3) on the basis of difference of opinion which cannot be the ground for reopening of the case U/s.147 and CIT Appeal has not considered while passing the order. The addition confirmed by the CIT Appeal by considering the Order 143(3) r.w.s. 147 may please be cancelled.
3) The original Order passed U/s.143(3) be restored and the order passed U/s.143(3) r.w.s. 147 be rejected as the Learned AO has failed to make independent enquiry to conclude that income has actually escaped instead of lying on the information received from Internal Audit. The Order U/s.143(3) r.w.s 147 be cancelled. 4) The appellant craves leave to add, alter or delete any of the ground of appeal.
When the case was called for none appeared on behalf of the assessee. Even though valid notice of hearing have been given on three occasions, fixing the date of hearing on 25.02.2025, 25.03.2025 and today i.e. 23.04.2025, there is no compliance and the assessee seems to be not interested in the hearing. We therefore proceed to adjudicate the appeal with the assistance of Ld. DR.
Perusal of record indicate that the assessee who is an individual is engaged in the business of milk trading and is a farmer. His total income has been assessed u/s 143(3) r.w.s. 147 of the Act for A.Y. 2011-12 vide order dated 19.12.2016 at Rs. 19,45,960/- as against return income of Rs. 2,05,515/- The total income of the assessee was earlier assessed at Rs. 2,48,050/- u/s 143(3) of the Act. Additions is mainly on account of long term capital gain income which Ld. AO has calculated after giving indexation benefit and also allowed deduction u/s 54B and 54F of the Act. However assessee still aggrieved preferred appeal before Ld. CIT(A) but there was no compliance to the seven notices of hearing given during the period 27.09.2018 to 23.08.2023 and Ld. CIT(A) concluded the appellant proceedings affirming the order of the Ld. Assessing Officer.
We have heard Ld. DR and perused the record placed before us. Considering the facts of the case and also observing that in past assessee opted for Vivad Se Vishwas Scheme but could not pay the due tax as per Form No. 3 and therefore Form 4 could not be issued. Further we notice that the assessee has not appeared before this Tribunal. It is also not known whether the assessee has opted in Vivad Se Vishwas Scheme recently again announced by the Central Government. We therefore deem it appropriate to remit the issues to the file of Ld. CIT(A) for which reasonable opportunity shall be granted to the assessee who shall remain vigilant and file the details on the first date of hearing unless otherwise prevented for sufficient cause. Assessee is also directed to update the E-mail ID and Contact details on the Income Tax Portal. 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 28th day of April, 2025.