DEVENDRA MOHANBHAI PATEL,PATAN V. THE ITO, WARD-1, PATAN

ITA 641/AHD/2025

AI Insights

This case involves an appeal by Devendra Mohanbhai Patel against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of a short-term capital gain of Rs. 30,00,000 for the Assessment Year 2012-13. The primary issue arose from the assessee's non-compliance with notices during the assessment proceedings, attributed to an incorrect email ID on the e-filing portal, leading to unawareness of communications from the revenue authorities. The Tribunal found merit in granting another opportunity to the assessee to present his case, considering the circumstances of non-receipt of notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714279 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATEEK SHARMA
• Assessee Lawyers: MAULIK KANSARA
• Keywords: Set aside; Opportunity of being heard
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.641/Ahd/2025 (Assessment Year: 2012-13) Devendra Mohanbhai Patel, C/o/ Divyand Shah & Co., Chartered Accountants, 201, 2nd floor, Devashish Complex, Nr. Regenta, Central Antarim Hotel, Off CG Road, Ahmedabad-380009. [PAN :AETPP7041 P] Vs. Income Tax Officer, Ward-1, Patan. (Appellant) .. (Respondent) Appellant by : Shri Maulik Kansara, AR Respondent by: Shri Prateek Sharma, Sr. DR Date of Hearing 05.08.2025 Date of Pronouncement 07.08.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 21.03.2024 passed by the Commissioner of Income Tax (Appeals) Mumbai/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeals: 1. Whether, on facts and in circumstances of the case and in law, Ld.CIT(A) has erred in confirming addition of short-term capital gain amounting to Rs.30,00,000/- Printed from counselvise.com ITA No. 641/Ahd/2025 Devendra Mohanbhai Patel Vs. ITO Asst. Year : 2012-13 - 2– Further, appellant craves leave to add, amend, alter on withdraw all or any ground of appeal. 3. On going through the record, we find that the notices u/s.250 were issued on 28.01.2021, 28.12.2023 & 13.03.2024, requesting the assessee to submit certain details/clarification/ explanation regarding sale of immovable property. Since the assessee remains un-compliant with the notices issued by the Ld.CIT(A), the action of the Assessing Officer was confirmed and the appeal was dismissed by the Ld.CIT(A). Before us, the Ld. Counsel for the assessee submitted that the non- compliance before the lower authorities occurred due to the non-receipt of notices. It was explained that the email ID reflected in the e-filing portal did not belong to the assessee, due to which the assessee remained unaware of the communications from the revenue authorities. The Ld. Counsel submitted that given an opportunity, the assessee is willing to submit all necessary details, evidences and explanations in support of her claim regarding the said transaction. 4. The Assessing Officer in his assessment order has stated as under: “…5. This office is in possession of information as available in AIR of ITS of the asssessee’s PAN. As per AIR information, the assessee entered in transaction of sale of immovable property with consideration of Rs 30,00,000/- In the assessment proceedings, the assessee was required to furnish the details/documents in respect of property sold called for via notices issued time to time. However, the assessee has not complied the notices and skipped the assessment proceedings To finalize the assessment, information was sought from the SRO, Mehsana, who vide letter did 26.11.2019 furnished copy of sale deed. As per sale deed, the property situated at Village Motidau, Dist Mahesana Revenue Survey no. 1132 sold by the assessee with consideration of Rs 30,00,000/Further, it was noticed that the said property valued by the stamp authority at Rs 30,00,000/- The sale deed was registered with SRO Mehsana vide registered document no Printed from counselvise.com ITA No. 641/Ahd/2025 Devendra Mohanbhai Patel Vs. ITO Asst. Year : 2012-13 - 3– 10198/2011 did. 25.11.2011 Though substantial amount of sale consideration was received from transfer of assets which is chargeable to tax under the head capital gain, no return of income filed by the assessee u/s 139(1) of the IT Act or against the notice u/s 148 of the Act. Further, the assessee has not availed any opportunities provided through various notices issued in the assessment proceedings. In absence of the details of purchase/sale of the property in question, entire amount of sale consideration of Rs. 30,00,000/- treated as short term capital gain Penalty proceedings u/s 271 (1) (c) of the Act initiated separately for concealment of income…” 5. Considering the totality of the facts and circumstances and in the interest of justice, we are of the view that one more opportunity should be granted to the assessee to present his case. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment, after affording due opportunity of being heard to the assessee. The AO is also directed to verify the name of the assessee as reflected in SRO, Mehsana vide registered document no.10198/20211 dated 25.11.2011 and provide copy of the said document obtained from the SRO to the assessee. The assessee is also directed to comply with the notices and cooperate with the revenue authorities in the proceedings. 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 07.08.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.08.2025 MV Printed from counselvise.com ITA No. 641/Ahd/2025 Devendra Mohanbhai Patel Vs. ITO Asst. Year : 2012-13 - 4– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "