BHAGWAN SINGH,INDORE V. ITO-4(4), INDORE

ITA 779/IND/2024

AI Insights

The case involves Bhagawan Singh, the assessee, who appealed against the order of the CIT(A) which upheld the A.O's assessment of his income for the Assessment Year 2011-12 at Rs.29,61,750 under sections 144/147 of the Income Tax Act, 1961. The assessee had not filed his return of income, leading to an ex parte assessment. The CIT(A) dismissed the first appeal due to the assessee's failure to provide necessary documents and evidence regarding the cost of acquisition and construction, as well as the genuineness of the claim for exemption under section 54F. The Tribunal found that both the A.O and CIT(A) did not assess the case on meritorious grounds and thus remanded the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705640 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH PORWAL
• Assessee Lawyers: AYUSHI GARG; ANSHIKA
• Keywords: Set aside; Cost of acquisition
• Section: 144; 54F

Judgement Text

" Page 1 of 6 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M JOSHI, JUDICIAL MEMBER ITA No.779/Ind/2024 (AY: 2011-12) Bhagawan Singh, Gram Bada Bangadada,Gandhinagar, Indore (PAN: EIXPS6950J) बनाम/ Vs. Income Tax Officer- 4(4), Indore (Appellant) (Respondent) Assessee by Ms. Ayushi Garg & Ms. Anshika Goyal, ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 25.06.2025 Date of Pronouncement 30.06.2025 आदेश / O R D E R Per Paresh M Joshi, J.M.: This is an appeal filed by the assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the “Act” for sake of brevity) before this Tribunal. The assessee is aggrieved by the order bearing Number ITBA/NFAC/S/250/2024- 25/1067943825(1) dated 24.08.2024 passed by the Ld. CIT(A) which is hereinafter referred to as the “Impugned order”. The Bhagawan Singh ITA No. 779/Ind/2024 - A.Y.2011-12 Page 2 of 6 relevant Assessment Year is 2011-12 and the corresponding previous year period is from 01.04.2010 to 31.03.2011. 2. FACTUAL MATRIX 2.1 That as and by way of an assessment order made u/s. 144/147 of the Act, the assesee’s total income exigible to tax was computed and assessed at Rs.29,61,750/-. The assessee has not filed his return of income. That the aforesaid assessment order is dated 13.12.2018 which is hereinafter referred to as the “impugned assessment order”. 2.2 That the assessee being aggrieved by the aforesaid “impugned assessment order” prefers first appeal u/s 246A of the Act before the Ld. CIT(A) who by the “impugned order” has dismissed the appeal of the assessee on the grounds and reasons stated therein. The core ground was that a remand report was called for and that the same was forwarded to the assessee for filing rejoinder. Even after three opportunities the assessee did not file any rejoinder. No documentary evidence was produced towards cost of acquisition and cost of construction. The genuineness of the claim of exemption u/s 54F was not proved either before Ld. A.O as well before 1st appellate authority and Bhagawan Singh ITA No. 779/Ind/2024 - A.Y.2011-12 Page 3 of 6 therefore action of the Ld. A.O was upheld and appeal was dismissed. 2.3 That the assessee being aggrieved by the “impugned order” has preferred the instant second appeal before this Tribunal and has raised following grounds of appeal in Form No.36 against the “impugned order” which are as under:- “1. The Ld CIT(A) has erred in making confirmation of the addition made by learned Assessing Officer of receipts of sale of immovable property Rs.2961750/- under LTCG.” 3. Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 25.06.2025 when the Ld. AR for and on behalf of the assessee filed on the record of this Tribunal a paper book containing pages 1 to 26. It was contended by him that the “impugned assessment order” was passed u/s 144 of the Act, due to non representation. Before Ld. CIT(A) in the first appeal representations and submissions were made and a remand report was sought by Ld. CIT(A) from the Ld. A.O however it is stated in the “impugned order” that no rejoinder was filed by the assessee. Per contra Ld. DR appearing for and on behalf of the revenue has contended that in view of “impugned assessment order” being u/s 144 of Bhagawan Singh ITA No. 779/Ind/2024 - A.Y.2011-12 Page 4 of 6 the Act it would be fair enough that matter be relegated back to Ld. A.O for passing a fresh assessment order on denovo basis. 4. Observations,findings & conclusions. 4.1 We now have to decide the legality, validity and the proprietery of the “impugned order” basis records of the case and rival contentions canvassed before us. 4.2 We have carefully perused the records of the case as presented to this Tribunal by both Ld. AR & Ld. DR to determine the legality, validity of the “impugned order” basis law and by following due process . 4.3 We observe on bare simple perusal of the “impugned order” that the Ld. CIT(A) has held that since no rejoinder is filed by the assessee to the remand report of Ld. A.O despite opportunities so due to lack of evidence the “impugned assessment order” is upheld of the Ld. A.O. We notice and observe that on page 11 of paper book which is a letter dated 12.02.2024 to the Ld. CIT(A) there is a reference to a remand Bhagawan Singh ITA No. 779/Ind/2024 - A.Y.2011-12 Page 5 of 6 report and the assessee has made his comments that necessary documents are already on record vide their earlier letter dated 18.02.2021 (Page 1 to 6 of paper book). Be that as it may we are of the considered view that lower authorities i.e. the Ld. A.O & Ld. CIT(A) both have not disposed off the case on meritorious grounds. The income of the assessee is required to be computed and assessed on merits. Unfortunately this has not happened. Accordingly we set aside the “impugned order” and remand the case back to the file of Ld. A.O to pass a fresh order on denovo basis by taking into consideration entire gamut of case including material and evidences submitted by the assessee. We accordingly direct assessee to place all documents, material in his possession and disposal to the Ld. A.O so that same can be weighed and appreciated in fresh proceedings on denovo bais. 5. Order 5.1 In the premises drawn up by us we set aside the “impugned order” as and by way of remand back to Ld. A.O for fresh adjudication and adjudgment accordingly to law on denovo basis. Bhagawan Singh ITA No. 779/Ind/2024 - A.Y.2011-12 Page 6 of 6 5.2 In the result appeal of the assessee is allowed for statistical purpose. Order pronounced in open court on 30.06.2025. Sd/- Sd/- (B.M. BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक / Dated : 30/06/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "