JANI PROPERTIES PRIVATE LIMITED,RAIGAD vs. DCIT, PANVEL, CIRCLE-PANVEL, PANVEL

Since the assessee did not respond to any of the 4 notices issued by the office of the Ld. CIT(A) / NFAC, the Ld. CIT(A) / NFAC, following the decision of Hon’ble Supreme Court in the case of CIT vs. B.N. Bhattacharjee and others reported in (1979) 10 CTR 354 (SC), proceeded to decide the appeal on the basis

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal by raising the following grounds: On facts and in law, 1] The assessee requests for condonation of delay in filing the appeal since there is a reasonable cause on its part in not filing the appeal within the prescribed time limit as per enclosed copy of affidavit. 2] The assessee submits that the notice issued u/s 148 is bad in law since the approval obtained by the learned A.O. is not in accordance with the provisions of section 151 and accordingly, the reasst. order passed u/s 147 is bad in law and the same may be declared null and void. 3] The assessee submits that the reopening u/s 148 is based on reason to suspect and not reason to believe and therefore, the reopening u/s 148 is incorrect and the reasst. order passed u/s 147 be declared null and void. 4] The learned CIT(A) erred in confirming the addition of Rs.25,63,000/-made u/s 50C of the Act without appreciating that the addition was not warranted on the facts of the case. 5] The learned CIT(A) erred in confirming the disallowance of expenditure of Rs.5,48,89,347/- claimed by the assessee while computing the income under the head ‘capital gain' on sale of property. 6] The learned CIT(A) failed to appreciate that the claim of expenditure of Rs.5,48,89,347/- made by the assessee was justified and hence, there was no reason to make the disallowance of the said expenses while computing the income of the assessee. 7] The appellant craves leave to add, alter, amend or delete any of the above ground of appeal.

The assessee has also raised an additional ground challenging the validity of re-assessment proceedings which reads as under:

The Ld. Counsel for the assessee referring to the above additional ground submitted that the additional ground raised is purely legal in nature which goes to the root of the matter and all the necessary facts are already available on record. Referring to the decision of Hon’ble Supreme Court in the case of the National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383 (SC) and in the case of Jute Corporation Of India Ltd vs Commissioner Of Income Tax And Anr (1991) 187 ITR 688 (SC) submitted that the additional ground raised by the assessee should be admitted.

The Ld. DR on the other hand strongly objected to the admission of the additional ground raised by the assessee.

After hearing both the sides and considering the fact that the additional ground raised by the assessee is purely legal in nature and all the material facts are already available on record and no new facts are required to be investigated, therefore, in view of the decision of Hon’ble Supreme Court in the case of the National Thermal Power Co. Ltd. v. CIT (supra) and in the case of Jute Corporation Of India Ltd vs Commissioner Of Income Tax And Anr (supra), the additional ground raised by the assessee is admitted for adjudication.

We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the assessee in the instant case, in response to notice u/s 148 of the Act, filed its return of income on 06.08.2021 declaring total income of Rs.7,20,34,630/-. However, due to failure of the assessee to e-verify the return filed on 06.08.2021 within the stipulated time the Assessing Officer treated the return as an invalid return and completed the assessment determining the total income at Rs.12,94,86,977/-. We find due to non-submission of any details before the Ld. CIT(A) / NFAC despite 4 opportunities granted, the Ld. CIT(A) / NFAC decided the appeal on the basis of material available on record and sustained the various additions made by the Assessing Officer. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to prove that the re-assessment proceedings are invalid and the additions are also not sustainable on merit. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate its case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to submit the requisite details before the Assessing Officer on the appointed date without seeking any adjournment under any pretext, failing which the Assessing Officer is at liberty to pass

In the result, the appeal filed by the assessee is allowed for statistical purposes.