SHRI RAJEEV BHATIA,JALANDHAR vs. INCOME TAX OFFICER, WARD 2 (3), JALANDHAR

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ITA 595/ASR/2018Status: DisposedITAT Amritsar04 May 2022AY 2010-113 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the authorities below had not ascertained the actual amount of sale consideration received by the assessee for the property sale. Therefore, the matter was remanded back to the CIT(A) for a fresh decision.

What were the facts?

The assessee appealed against the CIT(A)'s order upholding the addition of Long Term Capital Gain. The assessee claimed that part of the sale consideration was not received, and the CIT(A) had not properly ascertained the actual sale consideration received.

What were the issues?

Whether the CIT(A) correctly ascertained the actual sale consideration received for determining capital gains, and if the notice under Section 148 was validly served.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 28.04.2022Pronounced: 13.05.2022

ORDER Per Dr. M. L. Meena, AM:

This appeal has been filed by the assessee against the impugned order dated 25.10.2018 passed by the Ld. Commissioner of Income Tax (Appeals)-1, Jalandhar in respect of the Assessment Year 2010-11, wherein the assessee has raised the following grounds of appeal:

“1. That the orders of CIT(A) is bad, against the facts and law. 2. That the CIT(A) has wrongly upheld order u/s 143(3)/147 without service of notice u/s 148 on or before 31.03.2017.

Rajeev Bhatia v. ITO 3. That the CIT(A) has wrongly upheld notice u/s 148on the wrong facts and premise. 4. That the CIT(A) has wrongly taken sale consideration of property of Rs. 42,62,500/- instead of actual receipt of Rs. 34,69,000/-. 5. That the CIT(A) has wrongly added and amount of Rs.8,22,158 on account of Long Term Capital Gain. 6. That the appellant craves leave to add, amend, alter or withdraw any ground of appeal before final hearing.”

2.

None attended for the assessee, however, after hearing the ld. DR for the department, we decided the appeal on merits after going through the facts on record.

3.

At the outset, it is noted that the ld. CIT(A) has merely reproduced the finding of the AO. He has also stated the fact recording the copy of FIR filed by the assessee and that the part of the sale consideration of the transaction has not been received by the assessee, therefore, no capital gain ought to have been imposed on the amount which has not been received. It is noted that the authorities below have neither mentioned the mode of the execution of the sale transaction of the immovable property either way of agreement to sale or registered sale deed and the mode of the receipt of the amount of the sale consideration. The ld. CIT(A) has merely mentioned, however value of consideration which have been received or to be received for determining the capital gain. 4. Thus, the authorities below have not ascertained the actual amount of sale consideration received by the assessee against the sale of the property so as to determine the tax liability of the assessee towards the capital gains. In our view, the ld. CIT(A) ought to have examined the sale transaction by bringing the documentary evidences on record to determine

Rajeev Bhatia v. ITO the actual value of sale consideration while adjudicating upon the grounds of appeal of the assessee, such an order passed by the ld. CIT(A) in mechanical manner cannot be approved. In our considered opinion, this is a fit case to be remanded back to the file of the CIT(A) to deiced the issue afresh after granting the assessee adequate opportunity of being heard to prove its claim before the ld. CIT(A). Accordingly, we remand back the matter to the file of the ld. CIT(A) to consider the claim of the assessee afresh after taking into consideration, the documentary evidences filed by the assessee before him and would be filed during the course of fresh appellate proceedings. At the same time, the appellant assessee is directed to co-operate in the fresh proceedings before the CIT(A).

4.

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

Order pronounced in the open court on 13.05.2022.

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