VIMAL CHAND KOTHARI (DECEASED), L/H. PANKAJ KOTHARI,CHENNAI vs. ITO, NCW-15(5),, CHENNAI

Assessee is an individual. The assessing officer in his order observed that as per information collected, the assessee has entered into a sale transaction in respect of his immoveable property in Ottilyambakkam village for a consideration of Rs.1.40 crores. Assessee also deposited cash deposit of Rs.21,28,000/- and turnover of Rs.55,65,457/- on sale of scrapes. Assessee failed to file return of income for AY 2013-14. The case was reopened u/s147 of the Income Tax Act, 1961 (‘Act’ in short). During assessment proceedings, the assessee was not able to justify the sale of immoveable property / land in Ottilyambakkam as agricultural land not liable to long term capital gain tax. Hence, ld.AO made an addition of Rs.1,40,00,000/- vide order dated 29.12.2019 u/s. 143(3) r.w.s 147 of the Act. Aggrieved, assessee preferred an appeal before the ld.CIT(A), who dismissed the appeal of assessee on merits although assessee failed to appear or file written submissions before the ld.CIT(A) despite three notices. Assessee is in further appeal before us.

At the outset, Ld.AR for the appellant submitted that Ld. CIT(A) had not properly followed the principles of natural justice in true spirit. Ld.CIT(A) issued first notice dated 23.01.2021 during Covid-19 period and others in 2023 after gap of almost 2½ years which were inadvertently not noticed by the assessee. Ld. AR for the appellant further prayed that if an adequate opportunity of hearing is given before ld.CIT(A), assessee will prosecute the appeal properly. Ld.JCIT-DR relied upon the order of ld.CIT(A) and prayed for dismissal of appeal.

We have gone through the orders of lower authorities and submissions addressed by the parties before us. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(A) to prosecute his case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.CIT(A) to hear the appeal afresh. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal as per law.

In the result, appeal filed by the assessee is allowed for statistical purpose.