SANDEEP GUJRATI,INDORE vs. ITO-5(1), INDORE, INDORE

{
"clean_text": "आयकर अपीलीय अधिकरण, इंदौर न्यायपीठ, इंदौर\nIN THE INCOME TAX APPELLATE TRIBUNAL\nINDORE BENCH, INDORE\nBEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER\nAND\nSHRI PARESH M. JOSHI, JUDICIAL MEMBER\nITA No. 298/Ind/2025\nAssessment Year:2012-13\nSandeep Gujrati,\n9, Bunglow Colony\nBehind,56 Shop\nIndore\n(Assessee/Appellant)\nITO-5(1)\nIndore\nबनाम /\nVs.\n(Revenue/Respondent)\nPAN: AGDPG0505B\nAssessee by Shri N.D. Patwa, AR\nRevenue by Shri Ashish Porwal, Sr. DR\nDate of Hearing 14.10.2025\nDate of Pronouncement 27.10.2025\nआदेश/ORDER\nPer B.M. Biyani, A.M.:\nFeeling aggrieved by order of first-appeal dated 05.03.2025 passed by\nlearned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)"] which\nin turn arises out of assessment-order dated 06.12.2019 passed by learned\nITO-5(1), Indore [“AO”] u/s 147 r.w.s. 144 of Income-tax Act, 1961 [“the Act"]\nfor Assessment-Year [“AY"] 2012-13, the assessee has filed this appeal on\nthe grounds mentioned in Appeal Memo (Form No. 36).\nPage 1 of 4\nSandeep Gujrati\nITA No. 298/Ind/2025 - AY 2012-13\n2. Ld. AR for assessee withdraws the adjournment application filed and\nprays that the case may be heard. Ld. DR does not have any objection.\nHence, the adjournment application is allowed to be withdrawn and hearing\nof case is proceeded.\n3. The orders of lower-authorities were perused and deliberated. It\nemerged during hearing that the orders of AO as well as CIT(A) are ex-parte.\nThe AO initiated proceeding u/s 147 for AY 2012-13 on the basis of\ninformation available in Annual Information Return revealing that the\nassessee sold an immovable property situated at Gram Bardari, Tehsil\nDhar, Indore for Rs. 76,14,000/-. During proceedings, the AO issued notices\nu/s 148 followed by notices u/s 142(1) but finding no or vague response\nfrom assessee, the AO noted non-compliant attitude of assessee and made\nex-parte assessments u/s 144. The AO assessed entire sale consideration of\nRs. 76,14,000/- as taxable capital gain. Before CIT(A) also, the assessee has\nremained non-compliant. During discussions, Ld. AR for assessee admitted\nassessee's lapse in representation at the lower level but, however, submitted\nthat the assessee has collected all relevant details/documents of the\ntransaction to enable a proper representation before AO. He prayed that in\nthe interest of justice, an opportunity may be given to assessee by restoring\nthis matter back to the file of AO for a fresh adjudication.\n4. Ld. DR for revenue submitted that he would have no objection against\nremanding these cases to AO but the bench must give stricter direction to\nassessee.\nPage 2 of 4\nSandeep Gujrati\nITA No. 298/Ind/2025 - AY 2012-13\n5. We have considered submissions of both sides and carefully perused\nthe orders of lower-authorities. We have already noted the precise facts in\nearlier paras. On perusal of assessment-order, we also find that the AO has\ntaxed entire sale consideration of property as capital gain without giving\ndeduction of cost of acquisition, which is not in accordance with the\nprovisions of section 48 of the Act. Therefore, the AO's order is not\nsustainable. After a careful consideration of facts; having regard to the\nprinciple of natural justice and also bearing in mind that no prejudice would\nbe caused to revenue if the present matter is restored at the level of AO, we\nremand this matter back to the file of AO for adjudication afresh, at the risk\nand responsibility of assessee and subject to the condition that the\nassessee shall pay a cost of Rs. 2,000/- to ‘Prime Minister National\nRelief Fund' and submit receipt to AO. Needless to mention that the AO\nshall give necessary opportunity of hearing to assessee and pass appropriate\norder uninfluenced by his earlier order. The assessee is also directed to\nremain vigilant and ensure participation in the hearings fixed by AO and do\nnot seek unnecessary adjournments failing which the AO shall be at liberty\nto pass appropriate order in accordance with law. Ordered accordingly.\nPage 3 of 4\nSandeep Gujrati\nITA No. 298/Ind/2025 - AY 2012-13\n6. Resultantly, this appeal is allowed for statistical purpose.\nDue to non-sitting of bench on account of Deepwali Vacations as approved\nby order of Hon'ble Vice-President (AZ), this order is pronounced by putting\nup on notice board as per Rule 34 of ITAT Rules, 1963 on 27/10/2025\n \n(PARESH M. JOSHI)\nJUDICIAL MEMBER\n \n(B.M. BIYANI)\nACCOUNTANT MEMBER\nIndore\nदिनांक/Dated : 27/10/2025\nPatel/Sr. PS\nCopies to: (1) The appellant\n(2) The respondent\n(3) CIT\n(4) CIT(A)\n(5) Departmental Representative\n(6) Guard File\nBy order\nSr. Private Secretary\nIncome Tax Appellate Tribunal\nIndore Bench, Indore\nPage 4 of 4",
"summary": {
"facts": "The assessee sold an immovable property for Rs. 76,14,000/-. The Assessing Officer (AO) initiated proceedings under Section 147 and assessed the entire sale consideration as capital gain without allowing deduction for the cost of acquisition. The lower authorities, including the CIT(A), passed ex-parte orders.",
"held": "The Tribunal found that the AO's order was not sustainable as it failed to provide for the deduction of the cost of acquisition as required by Section 48 of the Act. Therefore, the matter was remanded back to the AO for fresh adjudication.",
"result": "Partly Allowed",
"sections": [
"147",
"144",
"148",
"142(1)",
"48"
],
"issues": "Whether the AO's assessment of entire sale consideration as capital gain without allowing deduction of cost of acquisition is sustainable. Whether the assessee should be granted an opportunity for fresh adjudication."
}
}