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Facts
The assessee, a senior citizen, reported a loss for the assessment year 2018-19. The Assessing Officer (AO) treated the receipt of equity shares worth Rs. 25.27 crores, allegedly received in lieu of selling agricultural land to a builder, as an unexplained credit and added it to the assessee's income.
Held
The Tribunal observed that the CIT(A) dismissed the appeal without looking into the documentary evidence filed by the assessee. Considering the facts and circumstances, the Tribunal restored the matter to the file of the AO for fresh examination and to grant meaningful opportunities to the assessee.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without considering the documentary evidence provided by the assessee.
Sections Cited
Section 69 of the Income Tax Act, 1961 (implied)
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Income Tax Appellate Tribunal, “A’’ BENCH: BANGALORE
Before: SHRI PRASHANT MAHARISHI & SHRI PRAKASH CHAND YADAV
PER PRAKASH CHAND YADAV, JUDICIAL MEMBER:
Present appeal of the assessee is arising from the order of ld. CIT(A) dated 7.8.2024 having DIN & Order No.ITBA/NFAC/S/250/2024-25/1067412043(1) and it relates to the assessment year 2018-19.
Facts giving rise to the filing of present appeal are that the assessee is an individual and a senior citizen, filed his return of income for the impugned year declaring a loss of Rs.6,48,189/- including agricultural income of Rs.3,30,890/-. The case of the assessee was selected for scrutiny.
Baregundi Jagadhisha Yadiyala, Udupi Page 2 of 3 2A During the course of assessment proceedings, the AO observed that the assessee has entered into an agreement to sell with one builder namely Ashwagandha Energy & Infratech Pvt. Ltd. It has been observed that assessee handed over certain land to the builder and in consideration received equity shares for value of Rs.25.27 crores. The AO was of the view that the assessee has failed to substantiate the source of this credit of Rs.25.27 crores. Accordingly, the AO treated the allotment of shares as unexplained credit and added the same to the income of the assessee.
Aggrieved with the order of AO, the assessee preferred an appeal before the ld. CIT(A) and filed certain additional evidences. However, the ld. CIT(A) observed that there is no application from the side of assessee, requesting for the admission for the additional evidence and hence, the additional evidences filed by the assessee remained unadmitted. Thereafter, the ld. CIT(A) dismissed the appeal of the assessee. Aggrieved with the order of ld. CIT(A), the assessee has come up in appeal before us and has raised four grounds of appeal.
4. At the outset, the ld. Counsel for the assessee argued ground Nos.2, 3 & 4 and prayed that the matter may kindly be restored to the file of AO for fresh adjudication in the interest of justice. It is pertinent to note here that counsel for the assessee has not pressed ground No.1. Therefore, the ground no.1 is dismissed as not pressed.
The ld. D.R. appearing on behalf of the revenue relied upon the orders of the authorities below.
6. After considering the rival submissions, we observe that in this case, the assessee is a senior citizen and has explained to the AO that he has sold certain agricultural lands to one builder and in lieu of that he has got equity shares equivalent to the value of R.25.27 Baregundi Jagadhisha Yadiyala, Udupi Page 3 of 3 crores. We further observe that in this case, the assessee has responded to the notice of AO on 11.8.2021 and the ld. AO has framed the impugned assessment on 27.8.2021. Similarly, we observe that the ld. CIT(A) has also dismissed the appeal without looking into the documentary evidence filed before him. Therefore, considering the facts and circumstances of the case and in the interest of justice, we restore this matter to the file of ld. AO for fresh examination needless to say that the AO will grant meaningful opportunities to the assessee before concluding the assessment.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 21st Nov, 2024