DURGA CHARAN SARKAR,DARJEELING vs. ITO, WARD-1(3), SILIGURI. , SILIGURI

The present appeal is directed at the instance of the assessee against the order of the National Faceless Appeal Centre, Delhi, [hereinafter the “ld. CIT(A)”] dt. 22/06/2023, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2014-15.

The Registry has pointed out that there is a delay of 88 days in filing of this appeal. There is a petition for condonation of delay stating therein, the reasons for the delay. On perusal of the petition, we are convinced that the assessee was prevented for reasonable cause from filing this appeal in prescribed time limit. Accordingly, we condone the delay and admit the appeal for hearing on merits.

At the outset, the ld. Counsel for the assessee submitted that the only issue for our adjudication is that whether the immovable property i.e., the land sold by the assessee during the year at the Durga Charan Shankar Assessment Year: 2014-15 2 consideration of Rs.6,00,000/-, is an agricultural land not falling under the category of capital asset u/s 2(14) of the Act. He was fair enough to accept that the assessee failed to appear before the lower authorities and the documents placed on record before this Tribunal were not filed before the lower authorities and thus, prayer was made to restore the issue before the Assessing Officer for necessary verification, to which the ld. D/R did not object.

We have heard rival contentions and perused the material placed before us. We notice that the assesse is an individual and declared income of Rs. 3,59,360/- in the income tax return for Assessment Year 2014-15 filed on 27/03/2015. As per the information available with the Assessing Officer, assessee was found to have sold immovable property during the year for a sale consideration of Rs.6,00,000/- and this transactions was not declared in the income tax return. Further, the ld. Assessing Officer noticed that the stamp value of this property was determined at Rs.24,00,002/-. In absence of any reply from the assessee, Rs.24,00,002/- was treated as long term capital gain and added in the hands of the assessee. The assessee failed to appear before the ld. CIT(A) on the given dates of hearing. Before us, the assessee has filed a paper book containing 44 pages which includes copy of Indian Village Directory about Tumba Mouza and copy of bank account, deed of conveyance and purchase deed. The sole claim of the assessee is that immovable property in question is an agricultural land not falling under the category of capital asset u/s 2(14) of the Act and the profit from sale thereof is exempt from tax.