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Facts
The assessee sold an immovable property and did not declare the sale consideration or capital gains in their income return. The Assessing Officer (AO) initiated proceedings under section 147 of the Income Tax Act, estimated the cost of construction, and calculated the profit on sale. The assessee failed to appear before the CIT(A) despite multiple notices.
Held
The Tribunal noted that the assessee did not appear before the CIT(A) for hearings. However, in the interest of justice, the Tribunal set aside the appeal to the file of the CIT(A) for fresh adjudication, directing the assessee to cooperate with the proceedings.
Key Issues
Whether the appeal should be set aside to the CIT(A) for fresh adjudication due to the assessee's non-appearance, and whether the assessee should be given another opportunity to present their case.
Sections Cited
147, 148, 144
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2018-2019) Shri Arjunan Damodaran Vs. The Income Tax Officer, 3/117, 16th Cross Street, Chennai. Ganga Nagar, Mettukuppam, Maduravoyal, Chennai 600 095. [PAN: AOAPD 4577R] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri K. Shanmugam, C.A., ��यथ� क� ओर से /Respondent by : Shri ARV Srinivasan, IRS, Add. CIT. सुनवाई क� तार�ख/Date of Hearing : 07.11.2024 घोषणा क� तार�ख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
The instant appeal filed by the assessee is directed against the order 06.06.2024 passed by the NATIONAL FACELESS APPEAL CENTRE (NFAC), Delhi, arising out of the assessment order dated 22.03.2023 passed u/s section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) by the NATIONAL FACELESS ASSESSMENT CENTRE for Assessment Year (‘AY’ in short) 2018-19.
2. Brief facts of the case are that as per the information available with the revenue, the proceedings under section 147 of the Act were initiated after recording reasons by the AO. Notice u/s 148 of the Act was issued on 26.03.2022. The case has been opened as the assessee has sold 1210 sq. feet of an immovable property at Maduravoyal, Chennai for a sale consideration of rs.35,00,000/- to V.S.Rajan and R. Milkha Santhakumar. The assessee in the return of income filed on 05.02.2019 has not declared the sale consideration received and not admitted any STCL/LTCG. The AO noted that the assessee failed to submit documentary evidence of source and transaction of purchase of the said property and also failed to file documentary evidence with regard to the construction cost of Rs.22,00,000/-. The AO also noted that the assessee had not shown any stock or stock in progress from AY 2016-17 to 2018-19 related to purchase of property of Rs.10,20,000/-. However, the AO on the basis of Annexure 1A of sale deed dated 28.06.2017 has estimated the cost of construction as Rs.12,10,000/-. Therefore, the AO worked out the profit on sale at Rs.12,70,000/-. The AO in its assessment order dated 22.03.2023 made a variation in respect of issue of sale of property. Before the ld.CIT(A), assessee did not appear hence the Ld.CIT(A) proceeded ex-parte and dismissed the appeal and upheld the order of AO. Hence, assessee is further in appeal before us.
At the outset, ld.AR referred para 5 of the impugned order and submitted that notice issued by the ld.CIT(A) has not been noticed by the assessee hence culmination of the impugned order. The ld.AR prayed for an opportunity before the