SUBHASH CHAND,GHAZIABAD vs. ITO, WARD 1(3), GHAZIABAD

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ITA 2451/DEL/2024Status: DisposedITAT Delhi02 December 2024AY 2011-12Bench: the CIT(A). The CIT(A) issued notice to the assessee on four occasions. Since there was no compliance from assessee's side, the CIT(A) dismissed the appeal of assessee in an ex-parte proceedings.4. A perusal of statement of facts filed before the CIT(A) reveals that apart from Subhas Chand, legal heir of deceased. Harish Chand had two more sons and the sale proceeds of agricultural land are stated to be divided among three sons of Harish Chand. However, this fact is unsubstantiated so far. 4 pages

AI SummaryRemanded

Facts

The original assessee, Harish Chand, sold immovable property in FY 2009-10. Post his death, an ex-parte assessment u/s 147 r.w.s. 144 was completed against his legal heir (Subhash Chand) adding Long Term Capital Gains, as no one responded to notices. The CIT(A) also dismissed the subsequent appeal ex-parte due to non-compliance from the assessee.

Held

The Tribunal condoned the slight delay in filing the appeal, noting bona fide reasons. It set aside the CIT(A)'s ex-parte order and remanded the case to the Assessing Officer for a de novo assessment, directing that the assessee be given a reasonable opportunity to make submissions, especially regarding the unsubstantiated claim of multiple heirs.

Key Issues

Ex-parte assessment and appeal dismissal; lack of proper opportunity for the legal heir; validity of Long Term Capital Gains addition.

Sections Cited

147, 144, 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”, DELHI

Hearing: 02/12/2024

(A.Y.2011-12) Subhash Chand, Legal heir of late Shri Harish Chand, 64 Rori Pargana Jalalabad, Modingar, Ghaziabad, Uttar Pradesh 201201 ...... अपीलाथ�/Appellant PAN: EDQPS-6317-K बनाम Vs. National Faceless Appeal Centre, Income Tax Officer, Ward 1(3) ..... �ितवादी/Respondent Delhi अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Ms. Jaya Chaudhary, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 02/12/2024 घोषणा क� ितिथ/ Date of pronouncement : : 02/12/2024 आदेश/ORDER

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 14.03.2023, for assessment year 2011-12.

The appeal is time barred by three days. The assessee has filed an application seeking condonation of delay in filing of appeal. After perusal of application we have satisfied that delay in filing of appeal was for bonafide reasons and not on account of negligence or inaction on the part of assessee/appellant. The delay in filing of appeal is condoned and appeal is admitted for hearing on merits.

A perusal of file reveals that the Assessment Order has been passed u/s. 147 r.w.s. 144 of the Income Tax Act,1961(hereinafter referred to as 'the Act') and even the CIT(A) has dismissed appeal of the assessee in an ex-parte proceedings. 3.1. As per the facts emanating from records, Shri Harish Chand had sold immovable property during Financial Year 2009-10 for a total consideration of Rs.4,21,95,000/-. The sale deed was registered on 30.04.2010, i.e. during the period relevant to assessment year 2011-12. On the basis of AIR information, the Assessing Officer (AO) issued notice u/s. 148 of the Act on 23.03.2018. In the meantime Harish Chand died on 25.09.2015, and his son Subhash Chand stepped into his shoes as legal heir, since none responded to the notice u/s. 148 of the Act, the AO completed assessment invoking the provisions of section 144 of the Act and made addition of Rs.3,37,56,000/- on account of Long Term Capital Gains. Against the Assessment Order dated 12.11.2018, the assessee filed appeal before the CIT(A). The CIT(A) issued notice to the assessee on four occasions. Since there was no compliance from assessee’s side, the CIT(A) dismissed the appeal of assessee in an ex-parte proceedings.