SHRI SHYAM SING KATEWA, JHUNJHUNU V. INCOME TAX OFFICER, WARD-1, JHUNJHUNU

ITA 343/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8869 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 13-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANCHAL MEENA ACIT
• Keywords: Sale consideration of property below Jantri Value; Principle of natural justice; Reassessment proceedings; Set aside
• Section: 143(3); 50C; 147; 148; 144

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,A JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 343/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2013-14 SHRI SHYAM SINGH KATEWA KATEWA BHAWAN, NATHAJI KA TILLA, JHUNJHUNU. CUKE VS. THE ITO, WARD-1, JHUNJHUNU. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ADZPK 9584 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE JKTLO DH VKSJ LS @ REVENUE BY : MISS CHANCHAL MEENA (ACIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 27/07/2020 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 28/07/2020 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 10.12.2018 OF LD. CIT (A), JAIPUR FOR THE ASSESSMEN T YEAR 2013-14. DUE TO PREVAILING COVID-19 PANDEMIC CONDITION THE HEARI NG OF THE APPEALS ARE CONCLUDED THROUGH VIDEO CONFERENCE. THE ASSESSE E HAS RAISED FOLLOWING GROUNDS:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN PASSING THE ORDER EX-PARTE WITH OUT ALLOWING ASSESSEE AN APPROPRIATE OF BEING HEARD. THE ACTION OF THE LD. ITA NO. 343/JP/2019 SHRI SHYAM SINGH KATEWA VS. ITO 2 CIT(A) IS ILLEGAL, UNJUSTIFIED, ARBITRARY, AGAINST THE FACTS OF THE CASE AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. APPROPRIATE RELIEF MAY PLEASE BE GRANTED. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. A O IN REOPENING THE ASSESSMENT UNDER SECTION 147 OF THE INCOME TAX ACT, 1961. THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIFIE D, ARBITRARY AND AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY QUASHING THE REASSESSMENT PROCEEDINGS BEING ILLEGAL AND WITHOUT JURISDICTION. 3. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD. AO HAS ERRED IN ISSUING NOTICE U/S 148 WITHOUT OBTAINI NG PROPER SANCTION U/S 151 OF THE INCOME TAX ACT, 1961. THE A CTION OF THE LD. AO IS ILLEGAL, UNJUSTIFIED, ARBITRARY AND AGAIN ST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY QUASHING THE REASSESSMENT PROCEEDINGS BEING ILLEGAL AND WITHOUT JURISDICTION. 4. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. A O IN COMPLETING THE ASSESSMENT EX-PARTE U/S 144 OF THE IT ACT, 1961 WITHOUT ALLOWING ASSESSEE AN OPPORTUNITY OF BEING H EARD. THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIFIED, A RBITRARY, AGAINST THE FACTS OF THE CASE AND THE PRINCIPLES OF NATURAL JUS TICE. APPROPRIATE RELIEF MAY PLEASE BE GRANTED. 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. A O OF INVOKING THE PROVISIONS OF SECTION 50C AND MAKING ADDITION O F RS. 14,369/- . THE ACTION OF THE LD. CIT(A) IS ILLEGAL, UNJUSTIF IED, ARBITRARY, AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY DELETING THE SAID ADDITION OF RS. 14,369/-. 6. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF LD. A O OF MAKING AN ADDITION OF RS. 2,73,610/- ON ACCOUNT OF ALLEGED UN EXPLAINED COST OF IMPROVEMENT. THE ACTION OF THE LD. CIT(A) IS ILL EGAL, UNJUSTIFIED, ARBITRARY AND AGAINST THE FACTS OF THE CASE. RELIEF MAY PLEASE BE GRANTED BY DELETING THE SAID ADDITION OF RS. 2,73,6 10/-. ITA NO. 343/JP/2019 SHRI SHYAM SINGH KATEWA VS. ITO 3 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THIS APPEAL WAS CALLED FOR HEARING. THE ASSESSEE IS SEEKING ADJ OURNMENT OF THE HEARING HOWEVER, SINCE THE ASSESSMENT AS WELL AS IM PUGNED ORDER OF THE LD. CIT(A) WERE PASSED EX-PARTE DUE TO THE REAS ON THAT NOBODY HAS APPEARED AND PARTICIPATED IN THE PROCEEDINGS ACCORD INGLY, WE PROPOSE TO HEAR AND DISPOSE OFF THIS APPEAL EX-PARTE. 3. THE LD. DR HAS SUBMITTED THAT THE ASSESSMENT ORD ER WAS PASSED EX-PARTE WHEN NOBODY HAS APPEARED DESPITE VARIOUS O PPORTUNITIES ISSUED BY THE AO. THOUGH THE ASSESSEE FILED THE APP EAL BEFORE THE LD. CIT(A) HOWEVER, DESPITE VARIOUS OPPORTUNITIES WERE GIVEN BY THE LD. CIT(A) NOBODY HAS APPEARED AND ATTENDED THE PROCEED INGS BEFORE THE LD. CIT(A) ACCORDINGLY, THE LD. CIT(A) HAS DISMISSE D THE APPEAL OF THE ASSESSEE. THUS LD. DR HAS VEHEMENTLY CONTENDED THAT THE ASSESSEE DOES NOT DESERVE ANY FURTHER OPPORTUNITY OF HEARING . 4. WE HAVE CONSIDERED THE CONTENTIONS OF LD. DR AND CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE FIN D THAT THE AO HAS MADE AN ADDITION OF RS. 2,87,979/- IN THE REASSESSM ENT PROCEEDINGS. THE ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE IT ACT AT TOTAL INCOME OF RS. 36,31,936/-. THEREFORE, THE ADDITION WHICH WAS MADE BY THE AO IN THE REASSESSMENT PROCEEDINGS IS REGARDING RE-COMPUTATION OF ITA NO. 343/JP/2019 SHRI SHYAM SINGH KATEWA VS. ITO 4 LONG TERM CAPITAL GAIN BY RESTRICTING THE COST OF A CQUISITION AS WELL AS THE COST OF IMPROVEMENT. THUS A SUM OF RS. 14,369/- WAS ADDED U/S 50C OF THE ACT AND AN AMOUNT OF RS. 2,73,610/- WAS ADDED O N ACCOUNT OF RESTRICTION OF COST OF IMPROVEMENT. IT APPEARS THAT THIS IS RECONSIDERATION OF THE ISSUE OF LONG TERM CAPITAL G AIN ARISING FROM SALE OF PLOT OF LAND WHICH WAS ALREADY SUBJECT MATTER OF THE SCRUTINY U/S 143(3) OF THE ACT. THE LD. CIT(A) DISMISSED THE APP EAL OF THE ASSESSEE IN PARA 5 AND 6 AS UNDER:- 5. IT HAS BEEN ENUMERATED ABOVE THAT AS MANY AS 4 OPPORTUNITIES WERE GIVEN TO THE APPELLANT WHICH HAV E NOT BEEN COMPLIED WITH OR HAVE FILED ADJOURNMENT LETTERS WIT H FRIVOLOUS REASONS. I AM OF THE VIEW THAT APPELLANT IS NOT INT ERESTED IN FILING SUPPORTING DETAILS FOR THE APPEAL FILED AND PURSUIN G IT FURTHER. 6. FURTHER, PERUSAL OF STATEMENT OF FACTS IN FORM 3 5 INDICATES THAT NO DETAILS, EVIDENCES OR EXPLANATION ARE FILED TO R EBUT THE FINDINGS IN THE ORDER OF THE AO. THUS, I AM OF THE VIEW THAT GROUNDS RAISED BY THE APPELLANT DESERVE TO BE REJECTED. THEREFORE, THE LD. CIT(A) HAS NOT DECIDED THE APPEA L OF THE ASSESSEE BY A SPEAKING ORDER. ACCORDINGLY, IN THE FACTS AND CIR CUMSTANCES OF THE CASE WE SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT (A) AND REMAND THE MATTER TO THE RECORD OF THE LD. CIT(A) FOR GRANTING ONE MORE OPPORTUNITY ITA NO. 343/JP/2019 SHRI SHYAM SINGH KATEWA VS. ITO 5 OF HEARING TO THE ASSESSEE AND THEN DECIDING THE SA ME AFRESH ON MERITS. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28/07/2020 . SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 28/07/2020. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI SHYAM SINGH KATEWA, JUMJHUNU. 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD-1, JUMJHUNU. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 343/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR