Loading judgment…
Facts
The assessee, a non-filer, was issued a notice u/s 148 for purchasing property. The assessee did not file the return or comply with notices, leading to an ex-parte assessment. The assessee's appeal before CIT(A) was dismissed for non-appearance, and the current appeal was filed after a significant delay.
Held
The Tribunal condoned the delay in filing the appeal, noting the assessee's age, remote location, and lack of legal understanding. Since the matter was adjudicated ex-parte before the AO and CIT(A), the case was restored to the AO for fresh hearing after providing an opportunity of being heard.
Key Issues
Whether the appeal filed after a considerable delay should be condoned, and whether the case should be remanded to the AO for fresh hearing due to ex-parte assessment.
Sections Cited
250, 139, 148, 142(1), 147, 271F, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCH “SMC”, JAIPUR
Before: SHRI GAGAN GOYAL & SHRI NARINDER KUMAR
PER GAGAN GOYAL, A.M: This appeal by assessee is directed against the order of NFAC, Delhi dated 28.06.2023 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’). The assessee has raised the following grounds of appeal: -
1. 1. On the facts and in the circumstances of the case and in law, Ld. AO has grossly erred in re-opening the assessment u/s. 147 of the Income Tax Act, 1961 arbitrarily.
2. On the facts and in the circumstances of the case and in law, the Ld. AO has grossly erred in completing assessment ex-parte i.e. without providing adequate opportunity the assessee of being heard.
3. On the facts and in the circumstances of the case and in law, the Ld. AO has grossly erred in observing that assessee has made unexplained investment of Rs. 21, 10,660/- in purchase of immovable property however has made the addition on account of long-term capital gain from sale of property of Rs. 21, 10,660/- therefore, the addition made is contrary to the reasons recorded and facts available on record and accordingly the same deserves to be deleted.
3.1 That the Ld. AO has further erred in ignoring the submissions made wherein assessee has explained the source of funds for acquisition of assets and there was no whisper about the sale of any immovable property of which addition has been made.
4 On the facts and in the circumstances of the case and in law, Ld.AO has grossly erred in initiating penalty proceedings u/s. 271F of the Income Tax Act
5. On the facts and in the circumstances of the case the Ld. Assessing Officer has grossly erred in initiating the penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961, arbitrarily.
That the appellant craves the right to add, delete, amend or abandon any of the grounds of appeal either before or at the time of hearing of appeal.
2. The brief facts of the case are that the assessee individual was amongst the non-filers of the return u/s. 139 of the Act. The revenue was in possession of information that the assessee purchased some property situated at Khasra No. 425, 435 of village-Nangal Purohit, Patwar Halka Nangal Purohit, Tehsil Amer. In view of this a notice u/s. 148 of the Act was issued on 27.03.2018. But the assessee did not file the due return of income u/s. 148 of the Act and also not complied with the notices u/s. 142(1) of the Act alongwith show cause notices issued. Ultimately, the case of the assessee was assessed at Rs. 21, 10,660/-. The assessee being aggrieved with this order of the AO preferred an appeal before the Ld. CIT(A), who in turn dismissed the appeal of the assessee on the ground that none appeared on behalf of the assessee as on the designated dates as per para 6 of the Appeal order. The assessee being further aggrieved with the order of the Ld. CIT (A) preferred the present appeal before us. We have gone through the order of the AO, order of the Ld. CIT (A) and submissions of the assessee alongwith grounds taken before us. It is observed that the appeal filed before us is time barred by 456 days. On this issue, the assessee filed an application for condonation of delay alongwith an affidavit duly signed and attested by the previous counsel of the assessee.
As per the application and affidavit mentioned (supra), the assessee is a senior citizen aged around 68 years and a resident of a remote village of Atal Biharipura and is not well versed with the taxation laws. The assessee handed over the notice to the counsel Mr. Baboo Lal; however, same remained non- complied due to communication gap and inactive number of the assessee. Thereafter, the assessee came to know about the order passed on 28.06.2023, when the assessee visited his previous counsel’s office to discuss the matter on 16.11.2024. Ultimately, the assessee filed his appeal on 29.11.2024. We have considered the affidavit filed by the assessee’s previous counsel also and found that this delay in filing of appeal before us is inadvertent and reasonable cause is there in the case of the assessee, hence delay in filing of appeal before us is condoned.
It is further observed that the matter of the assessee was neither discussed and analysed before the AO nor before the Ld. CIT (A) and the matter was adjudicated Ex-Parte on both the stages. In view of this, the matter is restored back to the file of the AO for fresh hearing in the matter after giving a fresh opportunity of being heard to the assessee and the assessee is directed to cooperate with the authorities below without seeking any adjournment and to be vigilant enough during the proceedings.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on the 13th Day of March 2025.