BASHEER ZEENATH,NAMAKKAL V. DCIT, CENTRAL CIRCLE-1, TRICHY

ITA 3284/CHNY/2024

AI Insights

The case involves an appeal by the assessee, Basheer Zeenath, against the order of the Commissioner of Income Tax (Appeals) Chennai-19, which was dated 29.05.2024 for the Assessment Year 2015-16. The primary issue in the appeal was the assessment of capital gains on the sale of agricultural land amounting to Rs.32,25,000, which the assessee contended did not attract capital gains tax. The initial assessment under section 153C read with section 144 of the Income Tax Act resulted in a total income assessment of Rs.7,45,050 and a tax demand of Rs.1,92,560. The assessee's appeal to the CIT(A) was dismissed on merits due to non-response to hearing notices. The Tribunal noted a delay of 145 days in filing the appeal but admitted it after considering the reasons and affidavit provided by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29367 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: T.S. LAKSHMI VENKATRAMAN
• Keywords: Set aside; Principle of natural justice
• Section: 144; 153C

Judgement Text

" आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.3284/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2015-2016) Basheer Zeenath, 52-A/2, Khadar Street, Rasipuram, Namakkal 637 408. [PAN:ABJPZ 5166G] Vs. The Deputy Commissioner of Income Tax, Central Circle -1, Trichy (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. T.S. Lakshmi Venkatraman, FCA Ĥ×यथȸ कȧ ओर से /Respondent by : Shri R. Clement Ramesh Kumar, CIT. सुनवाई कȧ तारȣख/Date of Hearing : 26.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 25.03.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals) Chennai-19 [CIT(A)] dated 29.05.2024 for Assessment Year 2015-16. 2. The registry has noted delay of 145 days in filing the appeal. Considering the period of delay and reasons stated in the condonation petition which is supported by an affidavit of the assessee, we condone the delay and admit the appeal for adjudication. 2 ITA No.3284/Chny/2024 3. Brief facts of the case are that the assessment was completed u/s 153C r.w.s 144 of the Act on a total income of Rs.7,45,050/- resulting in demand of Rs.1,92,560/-. The only issue involved in the above appeal is capital gain on sale of agricultural land amounting to Rs.32,25,000/-. The assessee pleaded that the aforesaid amount does not attract Capital Gain to Income Tax. Assessee further challenged the order of assessment u/s 153C r.w.s 144 of the Act before the ld.CIT(A) who dismissed the appeal of the assessee on merits as the assessee has not responded to notices issued for hearing. Aggrieved, assessee is in appeal before us. 4. Before the ld. Counsel for assessee submitted that the AO has not given proper notice u/s 282 of the Act to file evidence and documents to substantiate her explanation. The ld.DR stated that the assessee is habitual defaulter in appearing before the AO hence no lenient view is to be taken in this case and prayed for dismissal of appeal. 5. Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for fresh appeal hearing on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, sale deeds relating to sale of agricultural 3 ITA No.3284/Chny/2024 land and documents, if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th day of March, 2025 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 25-03-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "