VARDAN CONSTRUCTIONS PRIVATE LIMITED,GWALIOR vs. INCOME TAX OFFICER-2(3), GWALIOR
Facts
The assessee filed an appeal against an ex-parte order of the NFAC/CIT(A) which had dismissed their earlier appeal due to non-appearance. The assessee attributed the delay in filing the current appeal to not being aware of the earlier order's disposal.
Held
The Tribunal condoned the delay in filing the appeal, finding the reasons to be bona fide. The Tribunal set aside the order of the CIT(A) and restored the matter for a fresh adjudication after providing the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the delay in filing the appeal before the ITAT was condonable and whether the ex-parte order of CIT(A) should be set aside.
Sections Cited
143(3), 147, 50C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘DB’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘DB’ AGRA
(Through Physical/Virtual Hearing)
BEFORE SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER
ITA No.21/Agr/2025 [Assessment Year: 2012-13]
Vardan Construction Private Income Tax Officer, Limited, Ward-2(3), Aayakar Bhawan, 2nd Floor, Surya Tower, Old Vs City Centre, High Court Road, Gwalior, Lashkar Gwalior, Madhya Pradesh-474011 Madhya Pradesh-474001 PAN-AACCV8847K Appellant Respondent
Appellant by None Respondent by Shri Shailender Srivastava, Sr. DR
Date of Hearing 03.04.2025 Date of Pronouncement 03.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte
order dated 22.02.2023 of National Faceless Appeal Centre, Delhi, relating
to Assessment Year 2012-13 arising out of order u/s 143(3) r.w.s. 147 of
the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated
21.12.2018 passed by the Income Tax Officer, Ward-2(3), Gwalior.
None appeared on behalf of the assessee. However, the appeal of the
assessee is being decided after hearing the ld. Sr. DR and on the basis of
material available on record.
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This appeal has been filed on 17.01.2025 against the order dated
22.02.2023 of the NFAC/Ld. CIT(A) which as per the appeal memo was
received by the assessee on 25.02.2023. Therefore, there is delay about 21
months in filing of this appeal. The assessee has submitted the following
reasons for the delay in filing the appeal:
“That the assessee filed appeal on 26/01/2019 against the reassessment order passed on 21/12/2018. There after assessee did not receiving any notice of hearing only when portal was logged for preparing application under vivad se viswas scheme 2024 it was noticed that order was passed on 22/02/2023 as the assessee was not aware about the disposal of appeal, the appeal is delay of 21 months looking to the facts of case your honour is requested to consonance the delay and accept appeal.” 3.1. We have considered the reasons for the said delay and found to be
reasonable and bona fide. We, therefore, condone this delay and admit
this appeal for hearing.
Brief facts of the case: In this case, the original assessment was
completed u/s 143(3) of the Act on 27.03.2015 at the assessed income of
Rs.16,81,270/- after making an addition of Rs.2 lakhs. Thereafter, the
case was reopened u/s 147 of the Act after obtaining the approval from
PCIT, Gwalior, wherein the information recorded in the reasons was that
the assessee had sold an immovable property jointly owned with M/s
Balkrishan Garg HUF for Rs.90,00,000/- and Short Term Capital Gain of
Rs.11,81,680/- was offered. It was further noted by the Assessing Officer
in the reasons recorded that the stamp duty valuation of the said property
was Rs.2,22,82,500/- and 50% of the same being share of the assessee
comes to Rs.1,11,41,250/-. Thereafter, the Assessing Officer referred to
the provisions of section 50C of the Act and noted that the escapement of
3 ITA No.21/Agr/2025
income was thereto the extent of Rs.21,41,250/-(Rs.1,11,41,250/- -
Rs.90,00,000/-).
During the assessment proceedings, the Assessing Officer for the
reasons stated in the assessment order disallowed the claim of expenses
amounting to Rs.19,40,000/- and Rs.9,45,000/- under the head ‘Paid for
boundary wall’ and ‘Levelling’ respectively. The Assessing Officer took the
sale consideration at Rs.1,11,41,250/- (as against Rs.90 lakhs showin by
the assessee) and allowed acquisition cost as on 07.01.2009 amounting to
Rs.21,33,320/- and expenses (possession plus stamp duty) Rs.8 lakhs and
determined the Short Term Capital Gain of the said property at
Rs.82,07,930/-. The AO after noting the fact that the assessee had
disclosed STCG of Rs.11,81,680/- and therefore, restricted the addition at
Rs.70,26,250/-(Rs.82,07,930/- - Rs.11,81,680/-).
Aggrieved with the said order, the assessee filed an appeal before the
Ld. CIT(A). The ld. CIT(A) dismissed the appeal ex-parte on the ground that
the assessee failed to appear on the date of hearing when the case were
fixed for hearing and also the fact that no written submission in support of
grounds of appeal were filed.
Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal
before us.
We have heard the ld. Sr. DR and perused the grounds of appeal
filed by the assessee. From the perusal of the explanation for the reasons
in the delay for filing of this appeal, we are of the view that there was bona
fide reason for the assessee for his inability to attend the proceedings
before the Ld. CIT(A). Therefore, in the interest of justice, one more
4 ITA No.21/Agr/2025
opportunity is given to the assessee to represent its 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). 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 3rd April, 2025.
Sd/- Sd/- [SUNIL KUMAR SINGH] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 03.04.2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,
