Sh. Ram Lal, Panchkula V. ITO, Ward-3, Panchkula

ITA 141/CHANDI/2023

AI Insights

This case involves an appeal by Shri Ram Lal against the order of the Ld. CIT(A), NFAC, Delhi, concerning the Assessment Year 2012-13. The primary contention revolves around the taxation of Rs. 26,00,000 as income from Short Term Capital Gain (STCG) from the sale of agricultural land, which the assessee claims is beyond municipal limits and thus not taxable. The AO initially brought the entire sale consideration to tax due to non-submission of relevant details by the assessee, and the CIT(A) dismissed the appeal due to non-prosecution. The ITAT, considering the background of the assessee as a rural agriculturist and the substantial justice, decided to provide one more opportunity to the assessee to present his case with necessary documentation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127789 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 13-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Cost of acquisition; Set aside
• Section: 144; 250

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “बी” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ी आकाश द प जैन, उपा य! एवं ी %व&म (संह यादव, लेखा सद-य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA NO. 141/Chd/ 2023 नधा रण वष / Assessment Year : 2012-13 Shri Ram Lal Vill: Sukho Majri Pinjore, Panchkula-134102 बनाम The ITO Ward-3, Panchkula थायी लेखा सं./PAN NO: ALAPL7646L अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Nikhil Goyal, Advocate Shri Ashok Goyal, CA राज व क! ओर से/ Revenue by : Shri Dharamvir, JCIT, Sr. DR स ु नवाई क! तार&ख/Date of Hearing : 27/07/2023 उदघोषणा क! तार&ख/Date of Pronouncement : 04/08/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 21/10/2022 for the Assessment Year 2012-13 wherein the assessee has raised the following grounds of appeal: 1. Whether Ld. CIT(A) has erred in passing the order u/s 250 of the Act without considering the facts and circumstances of the case. 2. That the Ld. CIT(A) has erred in concluding the proceedings u/s 250 of the Act in violation of Principle of Natural Justice. 3. That the Ld. CIT(A) has erred in confirming the addition of Rs. 26,00,000/- being income from Short Term Capital Gain without taking into consideration the submissions regarding the ownership of the said land and the sale proceeds thereof. 4. Whether Ld. CIT(A) and Ld. AO have erred in confirming tax on sale of rural agricultural land ? 5. That the Appellant craves leave to add, amend, or alter the grounds of appeal before the appeal is finally disposed off. 2. At the outset it is noted that there is delay of eighty four days in filing the present appeal as pointed out by the Registry. After hearing the Ld. AR as well as the Ld. DR and considering the application seeking condonation of delay filed by the assessee 2 alongwith affidavit, we find that there was reasonable cause for delay in filing the present appeal, hence the same is condoned and appeal is admitted for adjudication. 3. On merit, we find that the AO has passed the order under section 144 r.w.s 147 of the Act wherein the amount of Rs. 26,00,000/- on account of sale of property has been brought to tax under the head Short Term Capital Gain (STCG). As per the AO, in absence of any submission filed by the assessee, the date of purchase as well as the cost of acquisition of the property could not be ascertained and therefore left with no option, the whole of the sale consideration was brought to tax as STCG in the hands of the assessee. Again before the Ld. CIT(A), there was non-compliance on the part of the assessee and the appeal of the assessee was dismissed on account of non prosecution. 4. Before us, the Ld. AR submitted that the assessee is an agriculturist and has sold a piece of his agriculture land wherein his half share of the consideration comes to Rs. 26,00,000/-. Since the assessee was not aware of the various tax laws and the provisions contained therein, the matter could not be attended to before the AO and even before the Ld. CIT(A). It was submitted that in the interest of substantial justice and keeping into account the background of the assessee being a rural agriculturist, an opportunity may be provided to the assessee to submit necessary documentation in support of the sale of the agriculture land which is beyond the prescribed municipal limits, hence the question of taxing the same does not arise for consideration. It was submitted that wherein an opportunity is so provided to the assessee, the assessee undertakes to submit the necessary documentation in support of his contention. It was accordingly prayed that the assessee may be allowed one last opportunity before the matter is decided against him. 5. The Ld. DR is heard who has submitted that sufficient opportunities have been provided by the AO as well as by the Ld. CIT(A) and there has been complete non compliance on the part of the assessee, therefore no useful purpose would be served in providing any further opportunity to the assessee. 6. After hearing both the parties and considering the matter available on the record, we find that it is not in dispute that both at the assessment and the appellate stage, the assessee has been issued notices from time to time and there has been non 3 compliance on his part. However given the fact that the assessee has been burdened with the tax liability on sale of agriculture land as so claimed by the Ld. AR which is beyond the municipal limits, we are of the view that the assessee deserves one more opportunity to put forward his submissions and supporting documentation in support of his claim of the agriculture land beyond the municipal limits. Therefore in the interest of substantial justice and fair play and undertaking taken by the ld AR on behalf of the assessee that the latter shall not abuse this opportunity, the matter is set aside to the file of the AO to decide the same afresh after providing reasonable opportunity to the assessee. All contentions are thus left open and the assessee is at liberty, where so advised, to raise the same before the AO. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 04/08/2023 Sd/- Sd/- आकाश द प जैन %व&म (संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य! / VICE PRESIDENT लेखा सद-य/ ACCOUNTANT MEMBER AG Date: 04/08/2023 आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु /त/ CIT 4. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च5डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar