PRAKASH SHARMA,GHAZIABAD vs. ITO WARD 2(2)(1), GHAZIABAD
Facts
The Assessing Officer made an ex-parte addition of Rs. 33,00,000/- as long-term capital gains based on AIR information regarding the sale of immovable property, as the assessee did not file a return of income. This addition was upheld ex-parte by the CIT(A). A key fact emerged that the assessee, Laxmi Pati Sharma, had died on 08.04.2019, before the notice under Section 148 was served on the legal heirs.
Held
The Tribunal observed that the appeal was filed by the legal representative of the deceased assessee. Recognizing that the legal heirs were not given a proper opportunity to present their case and substantiate contentions before the CIT(A), the Tribunal set aside the order of the CIT(A). The matter was remitted back to the CIT(A) for fresh adjudication after providing a reasonable opportunity of hearing to the assessee's legal heirs.
Key Issues
Validity of ex-parte assessment and CIT(A) order when the assessee had died and legal heirs were not given a proper opportunity to be heard regarding capital gains addition.
Sections Cited
Income Tax Act, 1961, Section 148, Section 142(1), Section 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
Before: SHRI VIKAS AWASTHY
आयकर अपीलीय अिधकरण िद�ी पीठ “एसएमसी”, िद�ी �ी िवकास अव�थी, �ाियक सद� IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2764/िद�ी/2024 (िन.व. 2012-13) ITA No.2764/DEL/2024 (A.Y.2012-13)
Laxmi Pati Sharma, L 16/2A, DLF Phase-2, Haryana 122022 ...... अपीलाथ�/Appellant PAN: AOSPS-5811-H
बनाम Vs. Income Tax Officer, Aaykar Bhawan, A-2D, Sector-24, ..... �ितवादी/Respondent Gautam Budh Nagar, UP 201307 अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Ms. Shivani Bansal , Sr. DR सुनवाई क� ितिथ/ Date of hearing : 10/09/2024 घोषणा क� ितिथ/ Date of pronouncement : : 29/11/2024 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 18.12.2023, for assessment year 2012-13. 2. The assessee in appeal is against the addition of Rs.33,00,000/- on account of capital gains. The facts of the case as emanating from records in brief are: The Assessing Officer (AO) received AIR information regarding sale of immovable
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property amounting to Rs.1,65,00,000/-. As per the records no return of income was filed by the assessee for AY 2012-13. The AO issued notice u/s. 148 of the Income Tax Act, 1961(hereinafter referred to as ’the Act’) to the assessee on 29.03.2019 which was duly served through speed post. In compliance of the said notice no return of income was filed by the assessee. The Assessing Officer, thereafter, issued statutory notice u/s. 142(1) of the Act, however, the same remained unattended by the assessee. The AO was constrained to complete assessment u/s. 144 of the Act. In assessment proceedings, the AO observed that during the period relevant to assessment year under appeal, the assessee along with other two joint owners had sold the property for a total consideration of Rs.1,65,00,000/-. The assessee’s 1/3rd share in the said sale consideration was Rs.55,00,000/-. The Assessing Officer estimated indexed cost of acquisition at Rs.22,00,000/- and made addition of Long Term Capital Gains Rs.33,00,000/-. 3. Against the assessment order, the assessee filed appeal before the CIT(A). None appeared to represent the assessee before the CIT(A), hence, the CIT(A) in ex-parte proceedings upheld the addition made by the AO. Now, the assessee is in second appeal before the Tribunal. 4. A perusal of the impugned order reveals that the assessee Laxmi Pati Sharma is stated to have died on 08.04.2019. The CIT(A) has mentioned the fact of death of Laxmi Pati Sharma from the statement filed in proceedings before the First Appellate Authority. It was further stated before the CIT(A) that notice u/s. 148 of the Act was received by legal heirs of Laxmi Pati Sharma on 31.12.2019. However, no documentary evidence was produced before the Authorities below
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to substantiate the contention. The present appeal has been filed through legal Representative of Late Shri Laxmi Pati Sharma. Considering entire facts of the case, I deem it appropriate to grant an opportunity to the assessee to make submissions before the First Appellate Authority and to substantiate her contentions. The CIT(A) after affording reasonable opportunity of making submissions to the assessee shall pass a speaking order, in accordance with law. 5. The assessee/legal heirs of the assessee after service of notice shall appear before the CIT(A), without fail. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Friday the 29th day of November, 2024. Sd/- Sd/- (VIKAS AWASTHY) �याियक सद�य/JUDICIAL MEMBER िद�ी/Delhi, �दनांक/Dated 29/11/2024 NV/- �ितिलिप अ�ेिषतCopy of the Order forwarded to : अपीलाथ�/The Appellant , 1. 2. �ितवादी/ The Respondent. 3. The PCIT िवभागीय �ितिनिध, आय.अपी.अिध., िद�ी /DR, ITAT, िद�ी 4. गाड� फाइल/Guard file. 5.
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BY ORDER, //True Copy//
(Dy./Asstt. Registrar) ITAT, DELHI
