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Facts
The assessee's appeal was directed against an order arising from the reassessment proceedings initiated under Section 147 of the Income Tax Act for AY 2011-12. The issue pertained to the taxability of a gifted agricultural land, which the assessee claimed was gifted by his mother, not sold by him.
Held
The Tribunal held that to avoid miscarriage of justice, the matter needed to be remitted back to the CIT(A) for fresh consideration. The assessee was to be granted an opportunity to be heard and to present evidence.
Key Issues
Whether the reassessment proceedings under Section 147 were validly initiated and whether the addition made was on account of a transaction (gift) that did not result in income for the assessee.
Sections Cited
147, 144, 156
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI
Before: SHRI S. RIFAUR RAHMAN
The instant appeal, filed by the assessee, is directed against the order dated 02.05.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1075997820(1) passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 26.11.2018 passed by the ITO, Ward-3(5),Noida, under Section 147 r.w.s.
Assessment Year 2011-12.
Grounds of appeal raised by the assessee read as under:
“During FY 2010-2011, a portion of our ancestral property, about 0.2810 Hectare of Agriculture Land, situated at Mohammadpur, on Faizabad Road, Uttar Pradesh, owned by my mother Mrs. Jahanara Shere, which had a market value of Rs. 86,07,707/-, was gifted to my brothers and a sister (real sons and a daughter of my mother) through registered Gift Deed, on 11/05/2010. Due to old age and poor health condition of my mother, she gave me the Power of Attorney, to sign & execute the relevant property gift deeds, on her behalf, in the office of Registrar of Properties, Barabanki, Uttar Pradesh. But due to some oversight I was being asked to pay capital gain on this gifted property, when I never gifted any property to anyone in FY 10-11 of Rs. 86,07,707/-. Since, I could not furnish the relevant Gift deed/ property gift papers before the Learned Assessing Officer ITO, Ward 3(5) Noida, and later-on before CIT (Appeals) Noida, I could not prove to them that NO property of Rs. 86,07,707/ was sold by me during FY 10-11, and therefore there does not arise any case of escaping any Income and resultant Income Tax on the same. But I am now in possession of relevant gift deed papers, of gifting of agriculture land worth Rs. 86,07,707/- which was infact gifted by my mother, to my brothers and sisters, and I only executed that gift deed, holding POA on behalf of my mother. In light of the fact that the enclosed Gift deed copy, prove it beyond any doubt, that the agricultural land of Rs. 86,07,707/- was actually gifted by my mother, and not me. I, therefore, request for COMPLETE REVERSAL of the Order Passed by the CIT (Appeal) Noida, u/s 147 read with Section 144, for AY 2011-2012, for Addition of Income of Rs. 60,25,395/- and request for complete waiver of additional Tax demanded of Rs. 34,07,325/-, vide demand notice u/s 156, imposed on me. Excerpts of Property Gift Deed are attached with this Reply dated 11/05/2010
Learned DR at the outset submitted that the assessee did not file appropriate documentary evidences such as bank accounts, sale-deed and purchase-deed in respect of the transaction in question in regard to the immovable property during the year and therefore, the addition made by the Learned Assessing Officer was further confirmed by the Learned First Appellate Authority.
In fact the Learned AR conceded to such facts pointed out by the Learned DR. He, therefore, prayed for setting aside the issue to the file of the Learned First Appellate Authority for fresh adjudication of the matter by granting an opportunity of being heard to represent his case effectively by adducing supportive evidences before him in respect of the case made out.
Having heard the Learned representatives of the respective parties and having regard to the facts and circumstances of the matter we are of the considered opinion that in order to avoid miscarriage of justice the matter requires to be remitted back to the file of Ld. CIT(A) for fresh consideration of the issue by granting an opportunity of being heard to the assessee and considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld. CIT(A), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with law. We order accordingly.
In the result, assessee’s appeal is allowed for statistical purposes.
Order pronounced in open court on 04.12.2025.