IYAJOOL,NOIDA V. INCOME TAX OFFICER WARD 5(1)(5), GAUTAMBUDH NAGAR

ITA 1857/DEL/2024

AI Insights

The case involves an appeal by the assessee, IYAJOOL, against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2016-17. The primary contention revolves around the reassessment order under section 144 of the Income Tax Act, 1961, which confirmed an addition of Rs. 25,17,930 to the assessee's income. This amount represented 50% of the interest on enhanced compensation received from NOIDA, which was subject to TDS. The CIT(A) had dismissed the initial appeal ex-parte without adjudicating on merits, leading to the current appeal. The Tribunal noted the assessee's illiteracy and unfamiliarity with the faceless assessment scheme as reasons for the delay in filing the appeal and admitted the case for hearing, emphasizing the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471504 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 20-04-2024
• Laws Referred To: Income Tax Act, 1961, Land Acquisition Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: SUMIT GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice; TDS
• Section: 144; 234B; 28

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘SMC’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.1857/Del/2024 [Assessment Year: 2016-17] IYAJOOL, C/o-Sanjeev Anand and Associates, 136, Navyug Market, Uttar Pradesh-201001 Vs Income Tax Officer, Gautambudh Nagar, Aayakar Bhawan, A-2D, Sector-20, Uttar Pradesh-201301 PAN-AEOPI6081F Assessee Revenue Assessee by Shri Sumit Gupta, CA Revenue by Shri Sanjay Kumar, Sr. DR Date of Hearing 14.10.2024 Date of Pronouncement 14.10.2024 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal filed by the assessee is directed against the order dated 17.11.2022 of the National Faceless Appeal Centre, Delhi, relating to Assessment Year 2016-17. 2. The grounds of appeal raised by the assessee reads as under:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the impugned reassessment order u/s 144 of the Income Tax Act, 1961 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs.25,17,930/- by recording incorrect facts and findings and without observing the principle of natural justice. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in 2 ITA No.1857/Del/2024 confirming the addition of Rs. 25,17,930/-when interest on compensation awarded under section 28 of the Land Acquisition Act is exempt under section 10(37) of the I. T. Act, 1961. 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts of the case in not reversing the action of Ld. AO in charging interest u/s 234A and 234B of the Act. 3. There is a delay of 459 days in filing of the appeal by the assessee before the Tribunal. In this regard, the assessee has filed an affidavit dated 19.04.2024 and an application dated 19.04.2024 submitting as under and requested to condone the delay:- 3 ITA No.1857/Del/2024 3.1. On the other hand, the ld. DR opposed the request for above condonation. 3.2. We have considered the submission made by the assessee for the condonation of the delay in filing of the appeal. The assessee is an illiterate person and his explanation that he was not familiar with the scheme of faceless assessment and therefore there was a delay in filing 4 ITA No.1857/Del/2024 the appeal, appears to be bona fide and reasonable. Considering these facts, we hereby condone the delay and admit this appeal for hearing. 4. Brief facts of the case:- The assessment in this case was passed u/s 144 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by treating an amount of Rs.25,17,933/- being 50% of interest of enhanced compensation of Rs.50,35,866/- received by the assessee from New Okhla Industrial Development Authority (NOIDA) on which TDS amounting to Rs.5,03,587/- was deducted, which was reflected in Form No.26AS of the assessee. 4.1. Against the said order, the assessee filed an appeal before the Ld. CIT(A), which again was dismissed ex-parte. However, the Ld. CIT(A) did not adjudicate the matter on merits. 5 Against the said order, the assessee is in appeal before us. 6. The Ld. AR submitted that the assessee was an illiterate person and could not represent his case before the Ld. CIT(A) due to his ignorance and not too being familiar with the income tax proceedings. It was further submitted that there was more than one claimant in respect of the interest on enhanced compensation amounting to Rs.50,35,866/- for which the assessee requested that the case may be set-aside to the file of the ld. CIT(A) for giving an opportunity to the assessee to explain the facts before him. 7. We have heard both the parties and perused the materials available on record. Considering the entire facts in perspective in order to subserve the interests of natural justice and to provide an opportunity to the 5 ITA No.1857/Del/2024 assessee to effectively represent his case, the order of learned CIT(A) is set aside and the matter is restored to the file of Ld. CIT(A) for fresh adjudication after providing reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14th October, 2024. Sd/- Sd/- [ANUBHAV SHARMA] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 14.10.2024. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, "