ANAR DEVI,MATHURA V. INCOME TAX OFFICER, WARD-1(3)(1), MATHURA

ITA 538/AGR/2024

AI Insights

The case involves twin appeals by Smt. Anar Devi for the Assessment Year 2012-13 against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeals challenge the reassessment of income and the levy of penalty under sections 144 r.w.s. 147 and 271(1)(c) of the Income Tax Act, respectively. The reassessment was based on the sale of urban agricultural land by the appellant, which was not initially reported in her income tax return. The Tribunal found that the Assessing Officer's assumption that the appellant had not filed a return was incorrect, leading to a vitiated reassessment process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40811 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Other Referred Cases: Sagar Enterprises (124 Taxmann.com 641), Ritika Gupta (2022; (8) TMI 796), Sunil Kumar Rastogi (2019; (12) TMI 1612)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: ANURAG SINHA LD
• Keywords: Condonation of delay; Capital asset; Reassessment proceedings; Capital Gains; Tangible material
• Section: 148; 144; 271(1)(c)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.537/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2012-13) & 2. आयकरअपील सं. / ITA No.538/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2012-13) Smt. Anar Devi Village Datiya, Mathura – 281 001 बनाम/ Vs. ITO 1(3)(1) Mathura ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AQZPA-3111-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Anurag Sinha (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid twin appeals by assessee for Assessment Year (AY) 2012-13 arises out of separate orders of first appeal authority. ITA No.537/Agr/2024 is quantum appeal that arises against the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 06-09-2024 in the matter of an assessment farmed by Ld. Assessing Officer [AO] u/s. 144 r.w.s. 147 of the Act on 19-12-2019. The other appeal assails levy of penalty u/s 271(1)(c). Having heard rival submissions and upon perusal of case 2 records including reasons recorded for reopening, the appeals are disposed-off as under. The registry has noted minor delay of 29 / 26 days in the appeals which stand condoned. 2. Pursuant to receipt of information that the assessee sold urban agricultural land for Rs.54.90 Lacs, the case was reopened and notice u/s 148 was issued on 27-03-2019. In the absence of any reply as forthcoming from the assessee, Ld. AO assessed short term capital gains of Rs.18.61 Lacs and framed the assessment. Consequently, penalty u/s 271(1)(c) was also levied for Rs.4.21 Lacs. The assessment and penalty stood confirmed in first appeal for want of condonation of delay and for want of any representation from the assessee. Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR took us through the reasons recorded for reopening the case of the assessee which is placed on Page No.8 of the paper-book. In para-4 of the reasons, Ld. AO alleged that the assessee did not file any return of income and it failed to offer gains on sale of property which amounts to escapement of income. There is no allegation that the transferred asset was a capital asset. The case has been reopened beyond 4 years since notice u/s 148 was issued on 27-03-2019. The reasons have been recorded on 15-03-2019. However, from the impugned order, it could be ascertained that the assessee e-filed her return of income on 17-12-2012 as noted by Ld. CIT(A) in the opening paragraph. In view of the assumption by Ld. AO that the assessee has not filed Income Tax Return, this fact has led to absence of necessary nexus between the tangible material and formation of belief which would vitiate the reassessment proceedings as held by Hon’ble Gujarat High Court in the case of Sagar Enterprises (124 Taxmann.com 641) 3 holding that the factor of non-filing of return of income has overbearingly weighed with the AO for arriving at satisfaction about the failure on the part of the assessee about escapement of income. Therefore, the assessment stood vitiated. Similar is the analogy in the decision of Lucknow Tribunal in the case of Ritika Gupta (2022; (8) TMI 796) which referred to the decision of Hon’ble High Court of Allahabad in the case of Sunil Kumar Rastogi (2019; (12) TMI 1612 dated 02-12-2019). We are of the opinion that the ratio of these decisions applies to the fact of the present case before us. Accordingly, we would hold that the jurisdiction of Ld. AO to reopen the case stood vitiated since the same has proceeded on wrong presumption that the assessee had not filed her return of income. Consequently, the assessment order stands quashed. The consequential penalty would not survive. 4. Both the appeals stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "