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Facts
The assessee sold an immovable property for Rs. 32,00,000, with a market value of Rs. 39,11,000 under Section 50C. The assessee did not file a return, and long-term capital gains were not declared for taxation. The assessment was completed ex-parte under Section 144.
Held
The Tribunal held that in the interest of justice, the assessee should be given another opportunity to represent her case before the CIT(A). The order of the CIT(A) was set aside, and the matter was restored to his file.
Key Issues
Whether the assessee is entitled to deduction u/s 54 of the Act, and whether the ex-parte order by CIT(A) needs to be set aside for another opportunity.
Sections Cited
144, 50C, 54
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘SMC’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
Date of Hearing 04.04.2025 Date of Pronouncement 04.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte order dated 15.12.2023 of National Faceless Appeal Centre, Delhi, relating to Assessment Year 2012-13 arising out of order u/s 144 of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 06.12.2019 passed by the Income Tax Officer, Ward-2(1)(2), Agra.
Brief facts of the case: The assessee is an individual and sold a property situated at Agra. In this case the AO received information that the assessee had sold an immovable property at Agra for consideration of Rs.32,00,000/-, which had a market value under Section 50C amounting to Rs.39,11,000/- during the relevant year. The Assessing Officer noted that the assessee had not filed a return for the year under consideration, and it was also noted that the long-term capital gains from this transaction had not been declared for taxation. The assessment in this case was completed u/s 144 of the Act, wherein, the Assessing Officer denied the exemption u/s 54 of the Act.
Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) decided the appeal ex-parte and confirmed the addition made by the Assessing Officer.
Aggrieved with the said order, the assessee is in appeal before us.
The ld. Counsel for the assessee, during the hearing before us submitted that the Ld. CIT(A) dismissed the appeal ex-parte, and requested that the matter may be set-aside to the file of the Ld. CIT(A). The Ld. Counsel for the assessee further submitted that the assessee had purchased a residential property against the said sale of property situated at Agra and the assessee is liable for deduction u/s 54 of the Act, which was denied by the Assessing Officer.
The Ld. DR supported the orders of the authorities below.
Having heard both the parties, we are of the considered view that in the interest of justice, one more opportunity be given to the assessee to represent her case effectively before the ld. CIT(A). We, therefore, set-aside the order of the ld. CIT(A) and restore the matter to his file to pass an order afresh after giving a reasonable opportunity of being heard to the assessee. Further, the assessee is also directed to represent her case before the ld. CIT(A) during the appellate proceedings. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 4th April, 2025.