GOPAL KUNDU ROY,SILIGURI V. ITO, WARD 1(3), SILIGURI

ITA 2263/KOL/2025

AI Insights

The case involves Gopal Kundu Roy, the appellant, who contested the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2014-2015. The primary issue was the reassessment of the sale proceeds from a property transaction, where the Assessing Officer initially recorded a sale amount of Rs.3,00,000 against the declared Rs.15,00,000, leading to a reopened assessment under section 147 of the Income Tax Act. The appellant had claimed an exemption under section 54F for reinvesting the sale proceeds into a new house, which was not accepted by the Assessing Officer, resulting in a higher assessed income and initiation of penalty proceedings for concealing income. The Tribunal found that the CIT(Appeals) had not adequately considered the appellant's submissions and documents, leading to the decision to remit the case back to the Assessing Officer for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791246 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 08-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Sale consideration of property below Jantri Value; Cost of acquisition; Capital Gains
• Section: 147; 148; 271(1)(c); 54F

Judgement Text

" ITA No. 2263/KOL/2025 (A.Y. 2014-2015) Gopal Kundu Roy 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 2263/KOL/2025 Assessment Year: 2014-2015 Gopal Kundu Roy,……………………………….…Appellant ‘Hare Krishna Bhawan’, P.O. Rabindra Sarani, Rathkhola Bazar, Siliguri-734006, West Bengal [PAN:ACGPR0359H] -Vs.- Income Tax Officer,……………………………..Respondent Ward-1(3), Siliguri, Aayakar Bhawan, Paribahan Nagar, Matigara, Dist. Darjeeling-734010, W.B. Appearances by: Shri Sujit Basu, Advocate and Shri Rajib Mukherjee, Advocate, appeared on behalf of the assessee Shri Kallol Mistry, JCIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: December 09, 2025 Date of pronouncing the order: December 09, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 19.08.2025 passed for Assessment Year 2014-2015. Printed from counselvise.com ITA No. 2263/KOL/2025 (A.Y. 2014-2015) Gopal Kundu Roy 2 2. Facts in brief are that the assessee is an individual. During the year under appeal, the assessee had sold his landed property for Rs.15,00,000/- on 03.09.2013 and the stamp duty value of the same was for Rs.15,09,374/-. The assessee had invested the sale proceeds of Rs.15,00,000/- in construction of his new house property. Due claim for exemption for investment in building for Rs.15,00,000/- had been made in the return. The return was processed under section 143(1) of the Act by the ld. Assessing Officer on 17.08.2015 and the ld. Assessing Officer had sent intimation of the assessee through Post on India Government Service. The ld. Assessing Officer observed that the assessee had sold his landed property for Rs.3,00,000/- and not for Rs.15,00,000/-, the stamp duty value of which was for Rs.15,09,374/- and observed that the assessee did not file his return of income and reopened the assessment under section 147 read with explanation 2(a) thereto being deemed case of escaped assessment, where no return of income has been furnished by the assessee although his total income during the previous year exceeded the maximum amount, which is not chargeable to income tax. Notice under section 148 was issued to the assessee dated 26.03.2021 and in response to notice under section 148, the assessee filed income tax return on 08.04.2021 admitting the income of Rs.3,12,447/-. Finally, ld. Assessing Officer determined the assessed income of assessee at Rs.16,31,348/- [returned income u/s. 148 Rs.3,12,447/- plus Rs.13,18,901/- (stamp duty Rs.15,09,374/- minus Rs.1,90,473/- as cost of acquisition)] and initiated penalty proceedings under section 271(1)(c) of the Act in respect of concealed the particulars of income. Printed from counselvise.com ITA No. 2263/KOL/2025 (A.Y. 2014-2015) Gopal Kundu Roy 3 3. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) dismissed the appeal of the assessee as no supporting documents such as proof of construction expenditure, bills or completion certificate were furnished by him despite opportunities to substantiate his case. 4. On being aggrieved, the assessee preferred an appeal before the Tribunal. At the outset, it was the submission of the ld. Counsel for the assessee that the assessee has already filed the return of income for the assessment year 2014-15 showing the long-term capital gains and also claimed exemption under section 54F of the Act, but the ld. Assessing Officer has not considered the return filed by the assessee under section 139(1) of the Act and passed the order under section 147/144 of the Act and also made an addition of Rs.15,00,000/-, which was shown as sale consideration. The assessee also filed the sale deed before me and also filed a paper book. In that paper book, the assessee filed the sale deed and also return of income under section 139(1) of the Act. The return of income clearly shows that the assessee has made the sale transaction and also claimed exemption under section 54F, but ld. CIT(Appeals) has not considered the same and dismissed the appeal. He, therefore, prayed to set aside the order of ld. CIT(Appeals). 5. It was the submission of the ld. Departmental Representative that during the appellate proceedings, so many opportunities were provided to the assessee to substantiate his claim, but no response was given from the side of assessee. The assessee has not Printed from counselvise.com ITA No. 2263/KOL/2025 (A.Y. 2014-2015) Gopal Kundu Roy 4 furnished the proof of construction expenditure under section 54F, bills or completion certificate etc. in support of his claim. Therefore, getting no other alternatives, ld. CIT(Appeals) dismissed the appeal of the assessee. He, therefore, prayed to confirm the order of ld. CIT(Appeals). 6. I have heard both the sides and perused the material available on record. By considering the totality of the facts and circumstances of the case and in the interest of justice and fair play, I am of the view that it is a fit case to set aside the orders passed by the revenue authorities since the assessee has filed relevant documents before the Tribunal. Therefore, I set aside the order passed by the ld. CIT(Appeals) and remit the matter back to the file of ld. Assessing Officer to examine the issues afresh and pass the order on merits after providing one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. Assessing Officer failing which the Ld. Assessing Officer shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee in the appeal are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 09/12/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 9th day of December, 2025 Printed from counselvise.com ITA No. 2263/KOL/2025 (A.Y. 2014-2015) Gopal Kundu Roy 5 Copies to :(1) Gopal Kundu Roy, ‘Hare Krishna Bhawan’, P.O. Rabindra Sarani, Rathkhola Bazar, Siliguri-734006, West Bengal (2) Income Tax Officer, Ward-1(3), Siliguri, Aayakar Bhawan, Paribahan Nagar, Matigara, Dist. Darjeeling-734010, W.B. (3) CIT(A), NFAC, Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. Printed from counselvise.com "