MEENACHI SUNDARAM,TUTICORIN vs. ITO, WARD-1(1), TUTICORIN

The assessee is an individual and filed the return of income for AY 2018-19 on 19.07.2018 declaring total income of Rs. 5,83,865/-. The A.O received an information that the assessee has received a consideration on sale of immovable property amounting to Rs. 23,50,000/- and had received cash of Meenachi Sundaram :- 2 -:

Rs. 8,50,000/- out of sale proceeds. Since the assessee has not disclosed the above transaction in the return of income, the A.O initiated re-assessment proceedings by issue of notice u/s. 147 of the Act. Since the assessee did not respond to the notices issued, the A.O passed an ex-parte order treating the entire sale proceeds as short term capital gains in the hands of the assessee. Aggrieved, the assessee filed further appeal before the CIT(A). Even before the CIT(A), the assessee did not appear nor did the assessee filed any evidence. Therefore, the CIT(A) dismissed the appeal ex-parte confirming the addition made by the A.O.

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not well versed in computers and therefore, was not aware of the notices issued by the Revenue. The Ld. AR further submitted that the assessee is fully dependant on the income tax counsel, whose e-mail id was given for correspondence. The Ld. AR also submitted that since the consultant did not inform the assessee properly, the assessee failed to represent case before the lower authorities. Accordingly, the ld. AR prayed that one more opportunity may be given. The ld. AR during the course of hearing also submitted that the purchase and sale deed of the impugned property to submit that the A.O is not correct in treating the entire amount received as short term capital gain without reducing the cost of purchase. Having pursued the materials on record and the facts peculiar to assessee's case, we are inclined to give one more opportunity to the assessee to represent the case properly in the interest of nature justice and fair play. Accordingly, we remit the appeal back to the A.O to call for necessary details and decide the case in accordance with law. The assessee is directed to file the Meenachi Sundaram :- 3 -: