Rajpal, Uttar Pradesh V. ITO Ward -2(3)(1), Bulandshahr

ITA 392/DEL/2023

AI Insights

The case involves an appeal by the assessee, Rajpal, against the order of the Commissioner of Income Tax (Appeals), Ghaziabad, which dismissed his appeal in limine due to non-payment of taxes as per Section 249(4) of the Income Tax Act, 1961, and for being filed belatedly by nearly 16 months without sufficient reason. The Income Tax Appellate Tribunal (ITAT) found that the CIT(A) did not provide an effective opportunity to the assessee before dismissing the appeal and noted that the assessee, being an uneducated villager and agriculturist, was possibly unaware of the income tax proceedings. The ITAT restored the matter to the CIT(A) for a detailed examination and proper adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121761 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-04-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 19-02-2023
• Other Referred Cases: Rankak & Ors vs Rewa Coalfields Ltd AIR 1962 SC 361, JCIT vs Tractors & Farm Equipments Ltd 104 ITD 149, Madhu Dadhav vs ACIT 317 IT 458
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 49(4); 49(4)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.392/DEL/2023 Assessment Year 2009-10 Rajpal, S/o Shri Mevaram, House No.35, Ibrahimpur, Junedpur Maujpur, Khurja Junction, Distt. Bulandshahr. v. The Income Tax Officer, Ward-2(3)(1), Bulandshahr. TAN/PAN: CWPPR7506D (Appellant) (Respondent) Appellant by: None Respondent by: Shri Om Parkash, Sr.DR Date of hearing: 27 04 2023 Date of pronouncement: 27 04 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a p t i o n e d a p p e a l h a s b ee n f i l e d by t h e A s se ss e e a g a i n st t he or de r o f t he C o m mi s si on er o f In c o m e T a x ( A pp e a ls), G h a zi a b a d (‘ C IT (A ) ’ in s h o rt ) d a t e d 3 1. 0 8 . 20 1 9 ar is i n g f ro m th e a ss e s s me n t or d e r d a t e d 2 8 . 1 0. 2 0 1 6 pa sse d b y t he A sse s si ng O ff ic e r ( A O ) un de r S ec t i on 14 4 r. w . S ec t i on 14 7 o f t h e I n c o m e T ax A c t , 1 96 1 ( t he A c t ) c on c e rn i n g A Y 200 9- 1 0. 2. T he gr ou n d s of appeal r ai sed b y t he assessee r ead as under : “ 1 . Th at t he L d . C I T ( A ) ha s e r r e d i n d is m i s s i n g t he ap p e a l a n d i n h o l d i n g t h a t t he o r i g i na l as s e s s m e nt o r d e r a lo n g w i t h de m a n d n o ti c e w a s d ul y s e r v e d o n t he a p p e l l an t o n 3 1 . 1 0 . 2 01 6 an d th e r e w a s no s u f fi c i e n t r e a s o n fo r e x c u s i ng t he d e l ay i n f i l i n g o f t h e s a id a p pe a l , w h i l e L d. A . O . h a d i s s ue d t h e c e r t i f i e d c o pi e s o f t he a s s e s s m e n t or de r al o ng w i t h de m a n d n o t ic e o n 1 2. 0 4 .20 18 d ue to I.T.A No.392/Del/2023 2 t h e no n -r e c e i p t of o r i g i n a l of t h e s a m e b y t he a p pel l a nt v i d e t he R e p l y f il e d w it h t he L d . A . O . o n 2 2. 0 3 . 2 0 18 . 2 . Th at t h e Ld . C I T ( A ) h as e r r e d i n 1 6, 8 7 , 5 7 8/ - ho ld in g t h a t t he a p pe a l i s de f e c t i v e a s n o p ay m e n t a s pe r pr ov i s i o ns o f s e c t i on 2 4 9 ( 4 ) h a s b e e n m ad e b y th e a pp e l l a n t . 3 . F or t h e s e a nd ot h e r g r o u n ds , w h i c h m a y be u r g e d a t t he t i m e o f t he h e ar i n g , t he a p pe a l m a y be a l l ow e d a n d j u s t ic e r e nd e r e d . ” 3. When the mat ter was cal led f or hea ri ng, none a ppear ed for the assessee. Acco rdi ngl y, t he mat ter was proceeded ex -part e. 4. On per usal of the or der of t he CI T( A), it is noticed t hat the app eal has been di s mi ssed in l i mi ne on t wo gr ounds. ( a) no pa yme nt of t axes as per pr ovi si ons of Sect ion 249( 4) has bee n made b y the assessee. ( b) t he appeal has been fi led bel atedl y b y near l y 16 mo nths f or whi ch e xpl ana ti on has n ot been fur nished. 5. The CI T(A ) thus concluded that appe al pr eferre d by t he assessee i s tr eated as non- est bei ng defect ive a nd conse quentl y the appeal was di s mi sse d i n li mi ne wi t hout deali ng wit h t he me rit s of t he a ddi t i ons/disal l owances in quest ion. Th e relevant ope rat ive para gra ph of t he or der of t he CIT(A) is repr oduced her eunder: “ 2 . 1 E x a m i n a t i o n of f a c t s r e v e a l s t ha t t he n o t ic e of d e m an d w a s s e r v e d on 31 . 1 0. 2 01 6 a n d t he a p p e al w a s e -f i l e d o n 2 4. 0 4 . 20 1 8 w h ic h i s de l a y e d by 1 6 m o n t h s . M o r e ov e r , e x a m i n a t i on of F o r m 3 5 r e v e a l s t h at a p pe l l a nt 's a p p e al i s de f e c t i v e as no p ay m e nt a s p e r p r o v i s i o n s o f s e c t i o n 2 49 ( 4 ) h a s b e e n m a de b y t he ap pe l l a nt a n d t h e a pp e a l i s s t at e d t o b e ou t o f t i m e . T h us , t h e r e i s un j us ti f i a bl e d e l ay i n f i l i ng t h e ap pe a l . C o nd o na t i on o f de l a y i s n ot a m a t t e r of r ig h t s i nc e a p pe l l a n t h as f ai l e d t o s ho w r e as o n s o f d e l a y o n l a s t d a y o f l i m it a t i o n a n d t h e r e af t e r f o r e a c h d a y , i t is f e lt t h at a p pe l l a n t h a s no t a c t e d w i t h r e a s o n a bl e d i li g e n c e in p r os e c u t i ng I.T.A No.392/Del/2023 3 t h e ap pe a l . R e l ia n c e i n th i s r e g a r d i s p l ac e d on dec i s i o n i n t he c a s e of R an k ak & O r s , V s R e w a C oa l f i e l ds Lt d . A I R 19 62 S C 3 61 , J C IT v s T r a c t or s & F a r m E q ui p m e n t s Lt d . (I T A T, C h e nn ai - T M ) 1 04 I TD 1 4 9 , M a dh u D a d ha v s A C I T (M a d ) 31 7 I T 4 5 8. C o n si d e r i ng a b ov e f a c t s an d c i r c u m s t a n c e s t hi s a p pe a l pr e f e r r e d b y t he a p pe l l a n t i s t r e a t e d a s n on - e s t be i n g d e f e c ti v e . ” 6. On per usal of the short or der of the CI T( A), i t i s not known w het her an y eff ecti ve o pport uni t y was gi ven to t he assessee bef ore di s mi ssal of t he appeal in l imine. Ther e is no refer ence t ow ar ds non co mpl i ance of an y not i ce bef ore t he CIT( A) . The income of Rs. 39, 11, 308/ - has been assessed agai nst the sale consi derat ion of i mmo vabl e pr opert y of Rs.28, 50, 000/ - as per AIR i nf or mat ion. The Assessi ng Of fi cer has est imat ed t he cost o f acquisi ti on of t he pr oper t y an d fr a me d t he assess ment under Sect ion 144 of the Act . T he Assessee as per , s tate me nt of fact s, has sol d agr icul tur al land whi ch i s cl ai med t o be exe mpt ed under Secti on 2( 14) of t he Act a nd on t he gr ound that such agr ic ult ur al l and i s not a capi tal asset. 7. The assessee bei ng agr ic ult uri st and uneducat ed vi l l ager resi di ng i n Vi ll age- Abr ahi mpur clai med t o be not knowi ng an yt hi ng a bout t he inco me ta x proceedi ngs. The counsel of t he assessee kept t h e assessee in dark on t he p roce edings a nd theref ore, the assessee cl ai med to have suffi ci ent cause for not present ing t he appeal bef or e the a uth ori ti es. The assessee has not f il ed r et ur n of i nco me at al l and theref ore t he case f or pa yment of ta xes would f al l unde r Secti on 2 49(4) ( b) of t he Act whic h obl iges t he assessee t o pa y t he adva nce t ax on t he l i kel y taxable i nco me. If t he plea of the assessee i s accepted t hat t he subj ect matt er of l and in sal e i s not a capit al asset , the n possibl y no t ax li abil it y w oul d a ri se at al l a nd t he ref ore, the r e would be I.T.A No.392/Del/2023 4 no i nf ri nge ment of Sect i on 249(4) of t he Act as alleged. Mor eover, t he CI T(A ) bei ng si lent on t he opp ort unity t o t he assessee i n the f ir st appel late pr ocee din gs, we consi der it exp edi ent to r est ore t he mat ter bac k t o t he fil e of the CIT(A). The CIT( A) s hall gi ve pr oper o pport uni t y t o the assessee t o explai n t he al l ege d defa ul t under Se ct ion 249(4) i f a ny, and als o towar ds bel at ed fi li ng of appeal . The CIT( A) shal l ke ep in mi nd the w at ershade pr inci pl es laid dow n i n Col lect or, Land Acqui si t ion vs. Mst . Kat ij i, (1987 ) 2 SCC 107 whi l e exa mini ng the issue of c ondonati on of del ay i n fil i ng t he a ppe al . The CIT( A) shall readj udi cate al l i ssues in accor da nce wi th l aw. 8. I n the result , the appeal of t he assessee i s al lowed f or stati sti cal purpose s. Order pronounced in the open Court on 27/04/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /04/2023 Prabhat