DURGESH CHANDRA TRIPATHI,LUCKNOW V. INCOME TAX OFFICER-1(1), LUCKNOW

ITA 23/LKW/2025

AI Insights

The case involves an appeal by Durgesh Chandra Tripathi against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), which confirmed an addition of Rs.2,61,000 on account of capital gains for the assessment year 2012-13. The primary contention was the incorrect adoption of the circle rate for computation of capital gains, whereas the actual sale consideration was lower. The Tribunal found that both the Assessing Officer and the CIT(A) had not provided a reasonable opportunity to the assessee, leading to the decision to set aside the appellate order and remand the matter back for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396725 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: REVENUE DID NOT EXPRESS ANY; SUNIL KUMAR RAJWANSHI
• Keywords: Condonation of delay; Set aside; Capital Gains

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “SMC”, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.23/LKW/2025 (Assessment Year: 2012-13) Durgesh Chandra Tripathi C/o Prramod Kumar Tripathi, C-11, Dayal Residency Ayodhya Road, Chinhat, Lucknow- 226028. v. Income Tax Officer-1(1) Pratyaksh Kar Bhawan, Ram Teerth Marg, Lucknow-226001. PAN:ABDPT5988L (Appellant) (Respondent) Appellant by: None Respondent by: Shri Sunil Kumar Rajwanshi, Addl. CIT(DR) O R D E R PER ANADEE NATH MISSHRA, A.M.: (A) The present appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), dated 24/01/2024 for the assessment year 2012-13. The grounds of appeal of the assessee are as under: - “1. Because the Learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in law and on facts by failing to appreciate that the property in question is situated in a remote area with no viable approach from the main road, resulting in a market value significantly lower than the Circle Rate. 2. Because the Learned CIT(A) erred in law and on facts in confirming an addition of Rs.2,61,000/- for the A.Y. 2012-13 on account of capital gains, which is invalid, arbitrary and factually incorrect. 3. Because the appellant craves leave to modify, amend, or alter any of the grounds of appeal mentioned herein and/or to add fresh grounds as may be deemed necessary at any stage of the proceedings. 4. Because the Learned CIT(A) erred in law and on facts in not considering the bona fide and genuine intent of the appellant, thereby causing grave injustice.” (B) The appeal is barred by limitation by 348 days. The assessee has filed an application seeking condonation of delay in ITA No.23/LKW/2025 Page 2 of 3 filing of this appeal. The application for condonation of delay is supported by an affidavit of the assessee. The Ld. Sr. Departmental Representative for Revenue did not express any objection to the delay being condoned. The reasons stated in application seeking condonation of delay in filing of this appeal are found to be satisfactory. Therefore the delay in filing of this appeal is condoned and the appeal is admitted for decision on merits. (B.1) In this case, vide assessment order dated 17/12/2019 passed by the Assessing Officer under section 143/147 of Income Tax Appellate Tribunal, 1961 (“Act”, for short) the assessee’s total income was determined at Rs.6,84,432/-. In the aforesaid assessment order, an addition amounting to Rs.2,61,700/- was made on account of capital gains. The assessee’s appeal against the aforesaid assessment order was confirmed by the Ld. CIT(A) vide impugned appellate order dated 24.01.2024. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 24.01.2024 of the Ld. CIT(A). (B.2) At the time of hearing, the assessee was represented by none. In the absence of any representation from the assessee’s side, the Ld. Sr. Departmental Representative (“DR”, for short) for Revenue was heard. He relied on the orders passed by the Assessing Officer and the Ld. CIT(A). However, he submitted that he had no objection if the issue in dispute is set aside to the file of the Assessing Officer with direction to pass fresh assessment order in accordance with law, after providing reasonable opportunity to the assessee. (B.3) The Ld. Sr. DR for Revenue has been heard and materials placed on record have been perused. On perusal of the aforesaid impugned appellate order dated 24.01.2024, the matter in ITA No.23/LKW/2025 Page 3 of 3 dispute regarding the aforesaid amount of Rs.2,61,000/- has been made by the Assessing Officer who adopted the circle rate for computation of capital gains, whereas the actual value of sale consideration disclosed by the assessee was lower. On perusal of records, it is found that the Assessing Officer s well as the Ld. CIT(A) passed their respective orders without providing reasonable opportunity Further, the factual matrix as available on records is not sufficiently clear. In view of the foregoing, and as learned Departmental Representative has no objection to this; the impugned appellate order dated 24.01.2024 of the Ld. CIT(A) is set aside and all the issues in dispute in the present appeal are restored to the file of the Assessing Officer with the direction to pass denovo order in accordance with law, after providing reasonable opportunity to the assessee. All the grounds of appeal in the present appeal are treated as disposed off in accordance with the aforesaid direction. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 30/05/2025. Sd/- [ANADEE NATH MISSHRA] ACCOUNTANT MEMBER DATED: 30/05/2025 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "