SUBBA RAO ANGIREKULA,VIJAYAWADA vs. INCOME TAX OFFICER, WARD-2(3), VIJAYAWADA

This appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“Ld. CIT(A)-NFAC”] in DIN & Order No. ITBA/NFAC/S/250/2023-24/1063396973(1), dated 26/03/2024 arising out of the order passed U/s. 144 r.w.s 147 of the Income Tax Act, 1961 [“the Act”] for the AY 2012-13.

On perusal of the explanation given by the assessee with respect to filing of the appeal before the Tribunal beyond the prescribed time limit, I find that the assessee was prevented by a reasonable and sufficient cause to file the appeal within the stipulated time. Therefore, I hereby condone the delay of 03 days in filing the appeal of the assessee before the Tribunal and proceed to adjudicate the appeal on merits.

Briefly stated the facts of the case are that the assessee is an individual did not file his return of income for the AY 2012- 13. During the assessment proceedings, the Ld. AO observed that during the AY under consideration, the transaction affected by the assessee under Doc No. 4408/2011 as a financial transaction for and on behalf of the assessee. The Ld. AO also observed that as transpired by the regular conveyance deed bearing Regd. No. 4408, dated 25/07/2011 cited above, there is a variation in the market value recorded therein and the purchase cost of Rs. 5,80,000/- as reflected in the agreement of sale dated 7/4/2005 and therefore, the Ld. AO observed that the said financial transaction clearly attracted LTCG which was not disclosed by the assessee earlier in proper perspective. The Ld. AO also observed that the market value of the property was identified by the SRO at Rs. 63,89,000/-. Thus, based on the information available on record, the case of the assessee was reopened by issuing a notice U/s. 148 of the Act dated 29/03/2019 after approval of the Ld. Pr. CIT, Vijayawada. Subsequently, the assessee was asked to file the return of income for the AY 2012- 13. In response, the assessee replied that he has no income which is above the exemption limit and hence the assessee did

On appeal, since there was no response from the assessee to the hearing notices issued with regard to the assessee’s appeal, the Ld. CIT(A)-NFAC passed ex-parte order and dismissed the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A)- NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal:

The Ld. CIT(A)-NFAC ought to have seen that the Assessing Officer wrongly applied provisions of section 50C when there was no transfer in the hands of the appellant-assessee. 8. any other ground(s) raised at the time of hearing with the leave of the Hon’ble Tribunal.”

At the outset, the Ld. Authorized Representative [“Ld. AR”] submitted before us that the Ld. CIT (A)-NFAC has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A)-NFAC in order to provide one more opportunity to the assessee of being heard.

I have heard the both the sides and carefully perused the materials available on record. On examining the facts of the case, I find that the Ld. CIT (A)-NFAC had posted the case on several occasions. However, there was no response on behalf of the assessee before the CIT(A)-NFAC on the dates of hearing with regard to the details / submissions as called for by the Ld. CIT(A)-NFAC. Therefore, the Ld. CIT (A)-NAFC was left with no other option except to adjudicate the appeal ex-parte and dismissed appeal in-limine. In this situation, considering the issues involved in the appeal, I am of the considered view that the Ld. CIT(A)-NFAC ought to have decided the case on merits instead of dismissing the appeal in- limine. However, considering the prayer of the Ld. AR, and in the interest of justice as well as strictly following the principles of natural justice, I hereby remit the matter back to the file of Ld. CIT (A)-NFAC in order to consider the appeal afresh and decide the case on merits by providing one more opportunity to the assessee of being heard in accordance with the principles of natural justice. At the same breath, I also hereby caution the assessee to promptly co-operate before the Ld. CIT (A)-NFAC

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.