Prayas Buildwell Pvt Ltd, New Delhi V. ITO WARD - 14(3), New Delhi

ITA 7390/DEL/2019

AI Insights

The case involves Prayas Buildwell Pvt. Ltd, the appellant, contesting the decision of the CIT(A)-7, New Delhi, which dismissed their appeal as barred by limitation without condoning the delay. The primary legal issue revolves around the exemption of profit from the sale of rural agricultural land for tax computation under section 115JB of the Income Tax Act, 1961. The CIT(A) had dismissed the appeal summarily, not addressing the substantive issues raised by the assessee. The Tribunal, after hearing the arguments, decided to remand the case back to the CIT(A) for a detailed examination of the merits of the case, acknowledging the sufficiency of the assessee's explanation for the delay in filing the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131067 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 30-11-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 08-09-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Principle of natural justice
• Section: 115JB

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 7390/Del/2019 : Asstt. Year : 2009-10 Prayas Buildwell Pvt. Ltd, C/o RRA Taxindia, D-28, South Extn, Part-1, New Delhi Vs ITO, Ward-14(3), New Delhi (APPELLANT) (RESPONDENT) PAN No. AADCP6526E Assessee by : Dr. Rakesh Gupta, Adv . Revenue by : Sh. Sanjay Nargas, Sr. DR Date of Hearing: 01.12.2022 Date of Pronouncement: 09.02.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld. CIT(A)-7, New Delhi dated 05.08.2019. 2. The assessee has raised the following grounds of appeal: “1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in dismissing the appeal of assessee by treating it as barred by limitation and that too without any basis and further erred in not condoning the delay in filing the appeal and that too without appreciating the facts and circumstances of the peculiar case and in violation of principles of natural justice. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in dismissing the ITA No. 7390/Del/2019 Prayas Buildwell Pvt. Ltd Page | 2 appeal of assessee by treating it as barred by limitation and in not condoning the delay in fling the appeal, is illegal, bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging of tax under the provisions of section 115JB on the gain arose on sale of Rural agricultural land. 4. That in any case and in any view of the matter, action of the Ld. CIT(A) in dismissing the appeal as barred by limitation and in not condoning the delay in filing the appeal and passing the impugned order which is contrary to law and facts and void ab initio and the same is not sustainable on various legal and factual grounds and without observing the principles of natural justice and deserves to be quashed.” 3. Heard the arguments of both the parties and perused the material available on record. 4. The issue involved pertains to exemption of profit from sale of agricultural land for the purpose of computation of tax u/s 115JB of the Income Tax Act, 1961. The ld. CIT(A) summarily dismissed the appeal of the assessee on the grounds that no sufficient reason has been given to explain the delay in filing of the appeal. 5. We have considered the matter and find that the explanation of the assessee constitutes a sufficient reason for late filing of the appeal. Hence, we remand the matter to the ld. CIT(A) to adjudicate the issue on merits. ITA No. 7390/Del/2019 Prayas Buildwell Pvt. Ltd Page | 3 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 09/02/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 09/02/2023 *Ajay Kumar Keot, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR