JASVANT BARAIYA,AHMEDABAD V. THE INCOME TAX OFFICER,WARD-3(3)(2), AHMEDABAD

ITA 1430/AHD/2024

AI Insights

This case involves an appeal by Jasvant Baraiya against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2016-17. The primary contention was the legality of the reopening of the assessment and the subsequent addition made under section 69A of the Income Tax Act, 1961, regarding the sale consideration of agricultural land. The assessee, an agriculturist, did not initially file a return for the income received from the sale of ancestral land, under the impression that no tax was applicable. The AO made an addition of the entire sale consideration to the assessee's income, which was contested in the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472296 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-11-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 01-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA SINGH
• Assessee Lawyers: MAHESH CHHAJED
• Keywords: Reopening of assessment

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “बी“, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.1430/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2016-17 Jasvant Baraiya 11-45 Panchal No Kuvo Vastral, Daskroi Ahmedabad – 382 418 (Gujarat) बनाम/ v/s. The ITO Ward-3(3)(2) Ahmedabad \u0013थायी लेखा सं./PAN: CHWPB 8346 P (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Mahesh Chhajed, AR Revenue by : Smt. Mamta Singh, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER DR. BRR KUMAR, VICE PRESIDENT This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals) [CITA[, National Faceless Appeal Centre, Delhi in proceeding u/s.250 of the Income Tax Act, 1961 vide order dated 25/06/2024 passed for the Assessment Year (AY) 2016-17. 2. The grounds of appeal taken by the assessee are as under:- 1. The order passed by the Ld.CIT(A) is against law equity & justice. 2. The Ld.CIT(A) has erred in law and on facts in upholding validity of order passed by the Ld.AO, when reopening of assessment is bad and illegal. ITA No. 1430/Ahd/2024 Jasvant Baraiya vs. ITO Asst. Year : 2016-17 2 3. Ld.CIT(A) has erred in law and on facts in upholding addition made u/s.69A of the Act of sale consideration of agriculture land of Rs.4,86,00,000/- when share of appellant is 1/4th. 4. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal. 3. Brief facts of the case are that the assessee is an agriculturist and engaged in agriculture activities on his ancestral land nearby Ahmedabad. The assessee has no other income and, therefore, did not file the return for the year under consideration. During the year, the assessee sold joint property being ancestral land for total consideration of Rs.4,86,00,000/-. The assessee was joint owner having 1/4th share and has received his share of Rs.1,21,50,000/-. The assessee did not file return of income on Long Term Capital Gain (LTCG) on sale of land as he was under the impression that no tax is applicable on ancestral land as he is an agriculturist. 3.1. The assessee did not attend for the hearing on 11/12/2021, 10/01/2022, 24/01/2022 and 28/02/2022 before the AO which led to passing of an order dated 23/03/2022 u/s.147 r.w.s.144 of the Act making addition of whole amount of total consideration of Rs.4,86,00,000/- u/s.69A of the Act. The assessee has also failed to comply with the notices issued by the Ld.CIT(A) which led to passing of an ex-parte order rejecting the appeal of the assessee. 4. We have heard both the parties and perused the material available on record. Before us, Ld.Counsel for the assessee submitted that given opportunity due compliance would be made before the AO, where the preliminary default has occurred. The Counsel has also agreed to pay an amount of Rs.5,000/- towards the cost, which shall be deposited in the Prime ITA No. 1430/Ahd/2024 Jasvant Baraiya vs. ITO Asst. Year : 2016-17 3 Minister’s National Relief Fund and the copy of proof to the AO, who shall issue the notice to the assessee and pass an assessment order De novo. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIALMEMBER ( DR. BRR KUMAR ) VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u001fितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u001f\"थ! / The Respondent. 3. संबंिधत आयकर आयु$ / Concerned CIT 4. आयकर आयु$ ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय \u001fितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स\"ािपत \u001fित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad attached with file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 21.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "