Hiteshbhai Mulajibhai Patel, Vadodara V. The Income Tax Officer, Ward-1(2)(1), Vadodara

ITA 103/AHD/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8346 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-03-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 19-02-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside
• Section: 54B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Hiteshbhai Mulajibhai Patel 210, Bhraman Falia, Chapad, Vadodara-391410 PAN: ARNPP6914E (Appellant) Vs The ITO, Ward-1(2)(1), Vadodara (Respondent) Assessee Represented: Shri Sanjay R Shah, A.R. Revenue Represented: Smt. Trupti Patel, Sr.D.R. Date of hearing : 05-03-2024 Date of pronouncement : 08-03-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the assessee as against the exparte appellate order dated 31-12-2022 passed by Commissioner of Income Tax [Appeals], National Faceless Appeal Centre [NFAC], Delhi arising out of the reassessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 [herein after referred as the Act] relating to the assessment year 2011–12. ITA No. 103/Ahd/2023 Assessment Year 2011-12 I.T.A No. 103/Ahd/2023 A.Y. 2011-12 Page No Hiteshbhai Mulajibhai Patel vs. ITO 2 2. The brief facts of the case is that the assessee is an individual and agriculturist, deriving income from agricultural land, and therefore, not having taxable income. The assessee sold his agricultural land on 09.02.2011 for a consideration of Rs.90,04,000/-. In turn, the assessee purchased agricultural land on 19.10.2011 for Rs.29,24,692/- and agricultural land on 26.11.2010 at Chansad Village of Rs.14,71,623/- and claimed benefit u/s. 54B of Rs.43,96,305/-. However the Assessing Officer treated the sale of land as Short Term Capital Gain and demanded tax of Rs.67,10,770/- which is inclusive of interest and denying the benefit of deduction u/s. 54B of the Act. 3. Aggrieved against the same, the assessee filed an appeal before the Ld. CIT(A) with communication email address to “[e-mail]” which belongs to close relative of Mr. Gaurang Pandya (Tax Consultant) for the purpose of complying with the requirement of notices receivable from the Income Tax Department, if any. Thus the hearing notices sent on 21.01.2021, 17.12.2021, 27.12.2021 and 14.03.2022 which were unattended by the assessee and has resulted in passing the exparte dismissal order. Further the ld. CIT(A) has not taken note of the Statement of Facts and Grounds of Appeal raised by the assessee, but simply dismissed the appeal. It was contended that the Ld. CIT(A) is supposed to pass the order with reasons and speaking manner even in exparte proceedings but the Ld. CIT(A) simply dismissed the appeal without any discussion. 3. In support of this contention, the assessee relied upon Judgment of Bombay High Court in the case of CIT Vs. Premkumar Arjundas I.T.A No. 103/Ahd/2023 A.Y. 2011-12 Page No Hiteshbhai Mulajibhai Patel vs. ITO 3 Luthra (HUF) reported in 69 taxmann.com 407 (Bom.) and other case laws. Further the assessee also filed Revised Form No. 35 with a notarized Affidavit showing the email address of assessee’s son namely “[e-mail]” with Mobile No. 9726799838 with a prayer to restore the issue to the file of Ld. CIT(A) for fresh adjudication and also placed on record the Purchase and Sale Deeds of the disputed agricultural lands. 4. Per contra, the Ld. D.R. appearing for the Revenue has no serious objection in setting aside the case to the file of Ld. CIT(A) for fresh adjudication as per the provisions of law. 5. Heard rival contentions and perused the materials available on record including the Affidavit filed by the assessee and documents filed in the Paper Book. Section 250(6) of the Act requires the Ld. CIT(A) to dispose of the appeal in writing and with reasons on the point of dispute raised by the assessee. Perusal of the Ld. CIT(A) order, discuss only the hearing opportunities given to the assessee and non-response from the assessee, resulting in dismissing the appeal exparte, without adjudicating the grounds raised by the assessee. Therefore in the Interest of Principle of Natural Justice, we deem it fit to set aside the appeal back to the file of Ld. CIT(A) with a direction to decide the appeal on merits, by giving one more opportunity to the assessee in the new email address namely “[e-mail]” and as per the provisions of law. Needless to say that the assessee should cooperate during the set aside appellate proceedings by making use of the opportunity and co-operate for disposal of the appeal on merits of the case. I.T.A No. 103/Ahd/2023 A.Y. 2011-12 Page No Hiteshbhai Mulajibhai Patel vs. ITO 4 6. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 08-03-2024 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 08/03/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद