CHETNA KANTILAL PATEL,AHMEDABAD V. THE DY.CIT, CIRLCE-3(1)(1), AHMEDABAD

ITA 172/AHD/2025

AI Insights

This case involves an appeal by Chetna Kantilal Patel against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi, which was passed under Section 250 of the Income-tax Act, 1961 for the Assessment Year 2018-19. The primary grievances included the issuance of an ex-parte order without a reasonable opportunity of being heard, the legality of a notice under section 148, and the incorrect computation of income as short-term capital gains instead of long-term capital gains. The Tribunal noted the assessee's failure to respond to multiple notices and decided to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126017 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTOSH KUMAR
• Assessee Lawyers: ASEEM THAKKAR
• Keywords: Capital asset; Opportunity of being heard; Capital Gains; Principle of natural justice; Grounds of appeal; Dismissed; National Faceless Appeal; Commissioner; Commissioner of Income Tax; Statistical purposes; Explanation; Legal and bad in law
• Section: 147; 148; 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 172/Ahd/2025 (Assessment Year: 2018-19) Chetna Kantilal Patel, 6, Manichandra Society -2, Sun & Step, T.V. Tower Road, Nr. Surdhara, Thaltej, Ahmedabad-380052 [PAN : AKGPP 3859 E] Vs. Deputy Commissioner of Income-tax, Circle 3(1)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Aseem Thakkar, AR Respondent by: Shri Santosh Kumar, Sr DR Date of Hearing 17.04.2025 Date of Pronouncement 24.04.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short) dated 20.11.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2018-19. 2. The grounds of appeal raised by the Assessee are as follows:- “1. The Learned Commissioner of Income-Tax (Appeals) has erred in passing an Ex-parte order without providing reasonable opportunity of being heard to the Appellant. Hence the same being ITA No. 172/Ahd/2025 Chetna Kantilal Patel Vs. DCIT Asst. Year : 2018-19 - 2– against the principles of natural justice and equity requires to be quashed. 2. The Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in issuing notice u/s. 148 of the I.T. Act, 1961 which is illegal and bad in law hence the same should be cancelled. 3. The Learned Commissioner of Income Tax (Appeals) has erred in confirming action of the Assessing Officer in passing an Ex parte order under Sec. 147 r.w.s.144 rws 144B of the I.T. Act, 1961 without giving reasonable opportunity of being heard to the appellant hence the same being against the principles of natural justice and law requires to be quashed. 4. The Learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in computing the total income at Rs.65,00,000/- holding that the assessee has sold the immovable property Flat No.503 to Jalpa Patel vide deed dtd.21.11.2017 holding that the assessee has got possession on 01.03.2017 and sold the same within 9 months of getting possession. He thereby erred in making addition of consideration amount under the head short term capital gains instead of long term capital gains. He further erred in taxing the same applying the provisions of Sec. 115BBE of the I.T. Act, 1961. 5. The Learned Commissioner of Income Tax (Appeals) ought to have considered fact that the immovable property sold by the appellant has been received by the assessee against the Flat No.B- 6 which was purchased and allotted to her in 1982-83 but on account of certain legal and technical glitches document for purchase was not executed at that relevant time. Thereafter all the Flat owners of the Dev Apartment jointly entered into the Development agreement with developers Yashvi Construction for redevelopment of their flats. Hence the flat so allotted and thereafter sold by the appellant should be treated as long term ITA No. 172/Ahd/2025 Chetna Kantilal Patel Vs. DCIT Asst. Year : 2018-19 - 3– capital asset and hence the appellant should be given benefit of cost inflation Index while computing the long term capital gain.” 3. On going through the record, we find that the notices u/s.250 were issued on 10.05.2024, 17.05.2024, 05.06.2024, 16.07.2024 and 08.11.2024 requesting the assessee to submit necessary documents / clarification. However, in pursuance to the same, the assessee failed to submit any reply and the appeal of the assessee was dismissed by the Ld.CIT(A), as ex-parte. The Ld. Counsel for the assessee prayed that given an opportunity, all the details/ clarification/ explanation would be provided to the revenue authorities. We also find that assessee has not complied even before the Assessing Officer, hence in the interest of justice the matter is remanded to the Assessing Officer for conducting assessment de-novo. The assessee shall comply with the notices issued by the authorities from time to time without seeking unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 24.04.2025 Sd/- Sd/- Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 24/04/2025 btk ITA No. 172/Ahd/2025 Chetna Kantilal Patel Vs. DCIT Asst. Year : 2018-19 - 4– आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation ……23.04.2025….….. 2. Date on which the typed draft is placed before the Dictating Member … …23.04.2025… 3. Other Member… ………23.04.2025……… 4. Date on which the approved draft comes to the Sr.P.S./P.S … 23.04.2025. …………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement .. 24.04.2025...... 6. Date on which the fair order comes back to the Sr.P.S./P.S ……24.04.2025…………. 7. Date on which the file goes to the Bench Clerk …24.04.2025…….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… "