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Facts
The assessee's appeal was filed against the order dated 09.12.2019 passed by the CIT(A) NFAC Delhi for assessment year 2012-13. The grounds of appeal challenge the initiation of proceedings under Section 148, the service of notice, and the addition of Rs. 52,00,000/- for unexplained sale of immovable property.
Held
The Tribunal noted that the assessment order was passed ex-parte due to non-compliance and the CIT(A) also dismissed the appeal ex-parte without giving findings on merit. Considering principles of natural justice, the case was remanded back to the AO.
Key Issues
Whether the initiation of proceedings under Section 148 was justified, and if an ex-parte assessment order and ex-parte appeal dismissal without merit findings violates natural justice.
Sections Cited
148, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
Appeal in this case has been filed against the order dated 09.12.2019 passed by the ld. CIT(A) NFAC Delhi for assessment year 2012-13.
2. Grounds of appeal taken by the assessee are as under:
A.Y. 2012-13 2 “1. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the initiation of proceedings under section 148 in as much as there was no escapement of income leading to a reason to belief and as such the re-opening is illegal, arbitrary and unjustified.
That the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate that no notice under section 148 was ever served on the assessee and as such the order passed is illegal arbitrary and unjustified.
That the Ld. Assessing Officer has erred in law as well as on facts in as much as there has been no reason to believe that there was an escapement of income in as much as the reasons recorded are based only on borrowed information and as such the assessment order passed is illegal, arbitrary and unjustified.
4. Without prejudice to the above, the Ld. Commissioner of Income Tax (Appeals) has erred in upholding the addition of Rs.52,00,000/- made on account of alleged unexplained sale of immovable property which is arbitrary and unjustified.
5. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the addition of Rs. 52,00,000/-treating agricultural land sold to be a Capital Asset especially when a specific ground of appeal in this regard was raised before him stating that the land was situated beyond the specified municipal limits which is arbitrary and unjustified.”
A.Y. 2012-13 3 3. During proceedings before us, it was brought to the notice of the bench that the order passed by the A.O. is an ex-parte order u/s 144 and because of non-compliance before the ld. CIT(A) also the order has been passed ex- parte. Moreover, it is important to note that while dismissing the appeal of the assessee ex-parte, the ld. CIT(A) has not given his findings on merit. Therefore, it was argued that keeping in view, natural justice to the assessee, the matter may be remanded back to the A.O. in order to verify the documents and other relevant papers of the assessee after providing adequate opportunity as required by the law.
We are of the considered view that in order to have natural justice in this case, the matter should be examined thoroughly by the lower authorities that as a matter of record has not been done in this case because of non-compliance of assessee before lower authorities.
Accordingly, we remand this case to the file of the A.O. to decide this case and pass an order de-novo after giving due opportunity to the assessee. The assessee is A.Y. 2012-13 4 also directed not to take adjournments and make compliance to the notices of the A.O. as required in the law.
In result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 26.03.2025.