GOPALA KRISHNA NARENDRA BABU ,BENGALURU V. DCIT, CIRCLE-3(3)(1), BANGALORE

ITA 283/BANG/2025

AI Insights

The case involves Mr. Gopalakrishna Narendra Babu, who sold immovable property for Rs. 54,50,000 during the assessment year 2016-17 but failed to file an income tax return or respond adequately to notices under sections 139 and 148 of the Income Tax Act, 1961. The AO assessed his income based on the sale transaction and imposed a total assessed income of Rs. 54,50,000. The assessee's appeal to the CIT(A)/NFAC was dismissed due to lack of cogent arguments against the AO's decision. The Tribunal found that the assessee had not provided sufficient documentation to support his claims and remitted the case back to the AO for a fresh assessment, emphasizing the need for the assessee to comply with procedural requirements and provide necessary documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706905 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 17-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEHA SAHAY
• Assessee Lawyers: PARESH S SHAH
• Keywords: Opportunity of being heard
• Section: 147; 148; 142(1); 139

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 283/Bang/2025 Assessment Year : 2016-17 Mr. Gopalakrishna Narendra Babu, No. B10-1903, South City Mico, Arekere Layout, Mico Layout SO, Bangalore – 560 076. PAN: ADRPB7997F Vs. The Deputy Commissioner of Income Tax, Circle – 3(3)(1), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Paresh S Shah, CA Revenue by : Ms. Neha Sahay, JCIT-DR Date of Hearing : 17-04-2025 Date of Pronouncement : 09-07-2025 ORDER PER KESHAV DUBEY, JUDICIAL MEMBER This appeal at the instance of the assessee is directed against the order of Ld.CIT(A)/NFAC dated 06/02/2025 vide DIN & Order No. ITBA/NFAC/S/250/2024-25/1072987009(1) passed u/s. 250 of the Income Tax Act,1961 (in short “the Act”) for the Assessment Year (in short “A.Y.”) 2016-17. Page 2 of 7 ITA No. 301/Bang/2025 2. The assessee has raised the following grounds of appeal: Page 3 of 7 ITA No. 301/Bang/2025 Page 4 of 7 ITA No. 301/Bang/2025 3. The brief facts that in the case of the assessee, specific information was flagged as per risk management strategy formulated by the CBDT through ITBA software under the head ‘NMS cases’. The gist of the specific information in the case of the assessee pertaining to the transactions which were carried out during the relevant year was as follows: “1. Property sale for a consideration of Rs. 54,50,000/-” 3.1 It was seen that the assessee has sold immovable property during the relevant year for a consideration of Rs. 54,50,000/-. However, the assessee has not filed any ITR for the year under consideration either u/s. 139 of the Act or in response to notice u/s. 148 of the Act. However, the assessee has filed computation of income during the course of assessment proceeding. On the basis of computation of income, the assessee was asked to provide various details such as copy of the purchase deed, details of cost of improvements along with bills & vouchers, bank statement and mode of payment, details of selling expenses, details of housing loan interest of Rs. 2 Lakhs claimed under income from house property, details of deduction claimed under Chapter VIA along with the documentary evidences. However, the assessee had not furnished any reply with regard to above in spite of ample opportunities as provided by the AO. Accordingly, the AO Page 5 of 7 ITA No. 301/Bang/2025 completed the assessment on a total assessed income of Rs. 54,50,000/- u/s. 147 r.w.s. 144 r.w.s. 144B of the IT Act on 07/03/2024. 4. Aggrieved by the order of AO passed u/s. 147 r.w.s 144 of the Act dated 07/03/2024, the assessee preferred an appeal before the Ld.CIT(A)/NFAC. 5. The Ld.CIT(A)/NFAC also dismissed the appeal of the assessee on the ground that there were no reasonable, cogent and valid arguments / contentions advanced by the assessee in the instant appeal to counter the AO decision as contained in the assessment order and accordingly, the additions / disallowances made by the AO was sustained. 6. Aggrieved by the order of the Ld.CIT(A)/NFAC, the assessee has filed the present appeal before this Tribunal. 7. Before us, the Ld.AR of the assessee vehemently submitted that the assessee could not file his return of income for the reasons beyond his control. Further, the notices issued u/s. 142(1) of the Act through email ID belong to the tax consultants / auditors. Lastly, the Ld.AR of the assessee submitted that both the authorities below have passed the order without providing sufficient opportunity of being heard and prayed to remit the entire issue in dispute to the file of AO for fresh consideration and also undertakes to submit all the documents before the AO if remitted back. 8. The Ld. DR on the other hand, supported the order of the authorities below and submitted that the assessee is completely slipshod not only before the AO but also in pursuing his appeal before the Ld.CIT(A)/NFAC and accordingly prayed that the appeal may be dismissed in limine. 9. We have heard the rival submissions and perused the materials available on record. Page 6 of 7 ITA No. 301/Bang/2025 10. It is an undisputed fact that assessee has sold immovable property during the relevant year for a consideration of Rs. 54,50,000/-. It is also an undisputed fact that assessee had neither filed his return of income u/s. 139 of the Act nor in response to notice u/s. 148 of the Act. We take note of the fact that assessee had filed computation of income during the course of assessment proceeding based on which the AO asked to furnish the certain details / bills / vouchers / bank statement, copy of deeds in order to substantiate the claim of the assessee. However, the assessee could not produce the same before the lower authorities and prayed to remit the issue to the file of AO for fresh consideration. This being so, in the interest of justice and fair play and as requested by the Ld.AR of the assessee, the issue in dispute are remitted to the file of AO to decide afresh in accordance with the law. While remitting the matter to the file of AO, we also consider it necessary to impose a token cost of Rs. 2,000/- to the assessee in aggregate owing to continued negligence shown to the statutory notices at both the levels. The assessee shall deposit the cost warranted in favour of Prime Minister Relief Fund and the receipt thereof shall be furnished before the AO. With these terms, the appeal of the assessee is restored to the file of AO for denovo adjudication in accordance with law. The assessee is also directed to produce the copies of purchase deed and sale deed, details of interiors/furniture & fittings done by the assessee along with bills, vouchers, bank statement, mode of payment and details of source thereof. Further, the assessee shall also furnish the details of selling expenses claimed amounting to Rs. 1,20,000/- including bill, vouchers, bank statements in order to substantiate his claim. The assessee is also directed to produce copy of housing loan interest statement / certificate from bank and documentary evidences with the proof of payment for the deduction claimed under Chapter VIA. We hereby clarify that in case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly. Page 7 of 7 ITA No. 301/Bang/2025 11. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 9th July, 2025. Sd/- Sd/- (WASEEM AHMED) (KESHAV DUBEY) Accountant Member Judicial Member Bangalore, Dated, the 9th July, 2025. /MS / Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. Guard file 6. CIT(A) By order Assistant Registrar, ITAT, Bangalore "