Champalal Choudhary Through L/H Manish Choudhary, Indore V. ITO-3(4), Indore

ITA 553/Ind/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3000 (ITAT-INDORE)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 28-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital asset; Principle of natural justice
• Section: 147; 144; 2(14)

Judgement Text

Page 1 of 3 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.553/Ind/2023 Assessment Year : 2012-13 Late Shri Champalal Choudhary, Through Legal Heir Manish Choudhary, 35, Khatipura, Indore. बनाम/ Vs. Income-tax Officer, 3(4), Indore. (Appellant/Assessee) (Respondent/Revenue) PAN: APUPC5183R Assessee by Shri Apurva Mehta, CA Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 09.04.2024 Date of Pronouncement 15.04.2024 आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by appeal-order dated 30.10.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 15.11.2019 passed by learned ITO,3(4),Indore [“AO”] u/s 147 read with section 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal. Late Shri Champalal Choudhary, Through Legal Heir Shri Manish Choudhary, Indore. ITA No. 553/Ind/2023 - AY 2012-13 Page 2 of 3 2. Ld. AR for assessee submitted that the AO re-opened assessment u/s 147 on the basis of information of sale of an immovable property for Rs. 2,07,52,000/- by assessee during the relevant year. Ultimately, the AO passed assessment-order u/s 144 due to non-compliances of notices by assessee. In the assessment-order so made, the AO assessed entire sale consideration of Rs. 2,07,52,000/- as taxable income of assessee. During first-appeal, the CIT(A) dismissed assessee’s appeal through ex-parte order due to non-prosecution by assessee. Ld. AR submitted that the income assessed by AO and upheld by CIT(A) is not in accordance with law because of two-fold reasons, (i) the impugned property sold by assessee was a rural agricultural land which was not a capital asset u/s 2(14) and therefore the sale transaction done by assessee was not taxable, and (ii) alternatively, the AO is wrong in taxing entire sale consideration as income without giving deduction of costs incurred by assessee and without giving benefit of exemption u/s 54B. Referring to assessment-order, Ld. AR also pointed out that the AO has made assessment-order as “Non-PAN” case whereas the assessee was having PAN. Lastly Ld. AR submitted that the assessee has also expired in Covid period. In these circumstances, Ld. AR urged, to remand this matter back to the AO for a consideration and adjudication afresh after hearing the assessee. Ld. AR submitted that given the opportunity, the assessee is ready to make representation before AO. Ld. DR showed no objection but requested to remand this matter to Jurisdictional Assessing Officer so that an apt assessment can be made. Further, he Late Shri Champalal Choudhary, Through Legal Heir Shri Manish Choudhary, Indore. ITA No. 553/Ind/2023 - AY 2012-13 Page 3 of 3 requested to direct the assessee to represent his case before AO and do not seek unnecessary adjournments. In view of this and also having regard to the principle of natural justice and fair play, we deem it fit to give one more opportunity to assessee so that the assessee can represent his case before AO for a proper adjudication. Accordingly, we remand this matter back to the file of Jurisdictional AO for a fresh adjudication after giving opportunity of hearing to assessee. The assessee is also directed to ensure participation in the hearings fixed by AO and do not seek unnecessary adjournments. 3. Resultantly, this appeal of assessee is allowed for statistical purpose. Order pronounced in open court on 15.04.2024 Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 15.04.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore