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Facts
The assessee filed an appeal against the order confirming the addition of short-term capital gain. The assessee failed to comply with notices from the lower authorities, claiming non-receipt due to an incorrect email ID on the e-filing portal.
Held
The Tribunal, considering the facts and circumstances, granted one more opportunity to the assessee to present their case. The matter was restored to the Assessing Officer for a de novo assessment.
Key Issues
Whether the assessee should be granted a fresh opportunity for assessment due to non-compliance with notices caused by technical issues with the e-filing portal?
Sections Cited
250, 139(1), 148, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 21.03.2024 passed by the Commissioner of Income Tax (Appeals) Mumbai/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeals:
1. Whether, on facts and in circumstances of the case and in law, Ld.CIT(A) has erred in confirming addition of short-term capital gain amounting to Rs.30,00,000/- Devendra Mohanbhai Patel Vs. ITO Asst. Year : 2012-13 - 2– Further, appellant craves leave to add, amend, alter on withdraw all or any ground of appeal.
3. On going through the record, we find that the notices u/s.250 were issued on 28.01.2021, 28.12.2023 & 13.03.2024, requesting the assessee to submit certain details/clarification/ explanation regarding sale of immovable property. Since the assessee remains un-compliant with the notices issued by the Ld.CIT(A), the action of the Assessing Officer was confirmed and the appeal was dismissed by the Ld.CIT(A). Before us, the Ld. Counsel for the assessee submitted that the non- compliance before the lower authorities occurred due to the non-receipt of notices. It was explained that the email ID reflected in the e-filing portal did not belong to the assessee, due to which the assessee remained unaware of the communications from the revenue authorities. The Ld. Counsel submitted that given an opportunity, the assessee is willing to submit all necessary details, evidences and explanations in support of her claim regarding the said transaction.
The Assessing Officer in his assessment order has stated as under:
…5. This office is in possession of information as available in AIR of ITS of the asssessee’s PAN. As per AIR information, the assessee entered in transaction of sale of immovable property with consideration of Rs 30,00,000/- In the assessment proceedings, the assessee was required to furnish the details/documents in respect of property sold called for via notices issued time to time. However, the assessee has not complied the notices and skipped the assessment proceedings To finalize the assessment, information was sought from the SRO, Mehsana, who vide letter did 26.11.2019 furnished copy of sale deed. As per sale deed, the property situated at Village Motidau, Dist Mahesana Revenue Survey no. 1132 sold by the assessee with consideration of Rs 30,00,000/Further, it was noticed that the said property valued by the stamp authority at Rs 30,00,000/- The sale deed was registered with SRO Mehsana vide registered document no Devendra Mohanbhai Patel Vs. ITO Asst. Year : 2012-13 - 3– 10198/2011 did. 25.11.2011 Though substantial amount of sale consideration was received from transfer of assets which is chargeable to tax under the head capital gain, no return of income filed by the assessee u/s 139(1) of the IT Act or against the notice u/s 148 of the Act. Further, the assessee has not availed any opportunities provided through various notices issued in the assessment proceedings. In absence of the details of purchase/sale of the property in question, entire amount of sale consideration of Rs. 30,00,000/- treated as short term capital gain Penalty proceedings u/s 271 (1) (c) of the Act initiated separately for concealment of income…
Considering the totality of the facts and circumstances and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present his case. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment, after affording due opportunity of being heard to the assessee. The AO is also directed to verify the name of the assessee as reflected in SRO, Mehsana vide registered document no.10198/20211 dated 25.11.2011 and provide copy of the said document obtained from the SRO to the assessee. The assessee is also directed to comply with the notices and cooperate with the revenue authorities in the proceedings.
In the result, the appeal of the assessee is allowed for statistical purposes.