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Facts
The assessee entered into a land development agreement, leading to a reopened assessment and an addition of Rs. 62,89,418/- as capital gain income. The assessee's appeal was dismissed by the CIT(Appeals) due to non-submission of explanations. The present appeal before the ITAT is filed after a delay of 492 days.
Held
The Tribunal condoned the delay of 492 days considering the circumstances presented. It was found that the assessee had non-compliance issues before the lower authorities. However, for the interest of justice, the Tribunal decided to set aside the order of the CIT(Appeals).
Key Issues
Whether the delay in filing the appeal can be condoned, and if the order of the CIT(Appeals) should be set aside to provide the assessee with a reasonable opportunity to present their case before the Assessing Officer.
Sections Cited
Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
Per Pradip Kumar Choubey, Judicial Member:- The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 11.09.2023 passed for Assessment Year 2016-2017.
(A.Y. 2016-2017) Vijendra Kumar 2. The appeal is time barred by 492 days in filing the appeal by the assessee. However, the assessee filed a condonation petition dated 9th April, 2025 saying that the concerned Advocate all of a sudden fell ill and not in a position to attend the Tribunal. Due to that, there was an inordinate delay of 492 days in submitting the appeal before the ITAT. The assessee was not aware of any notices of hearing and the order passed by the ld. CIT(Appeals). When the assessee came to know about the order passed by the ld. CIT(Appeals), the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 492 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay.
Considering the facts and circumstances of the case, we are of the view that the assessee was prevented in filing the appeal within the stipulated time. Therefore, we are inclined to condone the delay of 492 days. Hence the delay is condoned.
Briefly stated the facts are that the assessee is an individual. The appellant-assessee had entered into a registered land development agreement with M/s. Sri Ravi Homes Pvt. Limited, Patna (The Developer) in the Financial Year 2015-16 relevant to the assessment year 2016-17. The rights of ownership of the land were transferred by the Land Owner against receipt of ownership of a portion of property constructed while the remaining portion of constructed property is apportioned by the builder against the cost of development incurred by the developer and such arrangement attract capital gain and capital gain tax. The case was reopened.
Aggrieved by the said order of ld. Assessing Officer, the assessee preferred an appeal before the ld. CIT(Appeals), wherein the appeal of the assessee has been dismissed when the assessee failed to make any submission before the ld. CIT(Appeals).
Being aggrieved and not being satisfied, the assessee preferred an appeal before the ITAT.
None appeared on behalf of the asessee. The ld. D.R present.
Upon hearing the submission of the ld. Counsel of the revenue and on perusal of the order of lower authorities, we find that before the ld. Assessing Officer, there was non-compliance on behalf of the assessee even several notices have been sent to him. The ld. CIT(Appeals) has also held in its order that appellant was asked to submit his explanation in support of his claim, but he did not make any submission till date.
Keeping in view the order passed by the lower authorities, considering the facts and for the interest of justice, we are inclined to set aside the order of ld. CIT(Appeals) and restore the appeal of the assessee before the ld. Assessing Officer to decide the same afresh after providing reasonable opportunity of being heard to the assessee and going over the documents filed by the assessee.