ARJUN GUPTA ,GWALIOR vs. ASSESSING OFFICER ASSESSMENT UNIT, GWALIOR

Brief facts of the case: The AO noted that the assessee was a non-filer and various notices u/s 142(1) of the Act and show-cause notice u/s 144 of the Act were issued to the assessee but the assessee failed to file any submission. The AO had information that as per TDS statement, the assessee had received an amount of Rs.71 lakhs on account of sale of immovable property to Smt. Seena Saramma Williams. The AO noted that the assessee failed to appear during the assessment proceedings and also did not file any response and the assessment order was passed u/s 147 r.w.s.

Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) dismissed the appeal and confirmed the addition made by the Assessing Officer on the ground that the assessee failed to file any response to various notices despite several opportunities were given to the assessee for hearing of the appeal.

Aggrieved with the said order, the assessee is in appeal before us.

The ld. Counsel for the assessee submitted that the assessee has explained the reasons for non-appearance before the ld. CIT(A) in ground no.1 of the appeal, wherein, it is stated that the ld. CIT(A) was not justified in deciding the appeal on 25.08.2023 while notice u/s 250 of the Act for hearing of the appeal was received by the assessee on 26.08.2023. The ld. AR further submitted that in the said ground, it has been requested that the appeal may kindly be restored to the file of the Ld. CIT(A) for further adjudication after giving sufficient time for submissions on grounds of appeal. Further, the ld. AR also submitted to allow appropriate relief after admitting the additional ground of appeal and additional evidence under Rule 39 of the ITAT Rules.

The ld. Sr. DR supported the orders of the authorities below.

We have heard both the parties. The explanation of the assessee for not appearing before the Ld. CIT(A) is found to be reasonable. Further, the assessee by way of additional evidences under Rule-29 of the ITAT Rules 1962, has placed copy of the purchase deed of the land to claim the cost of capital asset sold (Rs.23,41,000/-) in computing the capital gains by the assessee. The additional grounds of appeal and the additional evidences (purchase deed and the sale deed) are essential for adjudicating the appeal of the assessee and for determining of the correct computation of the capital gains. Therefore, the same are admitted and the Ld. CIT(A) is directed to examine the same while deciding the appeal. Therefore, in the interest of justice, one more opportunity is given to the assessee to represent his 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 and as per law. Further, the assessee is also directed to appear 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.