LATE CHIMANLAL JERAMBHAI BHAGAT LEGAL HEIR MINAXI RAKESHBHAI KAHAR,SURAT V. ITO, WARD-1, VAPI

ITA 45/SRT/2025

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The case involves an appeal by the legal heir of Lt. Chimanlal Jerambhai Bhagat against the order of the Commissioner of Income-tax (Appeals), which sustained additions made by the Assessing Officer under sections 50C, 143(3) r.w.s 144, and 54B/54D of the Income Tax Act, 1961. The additions included capital gains and unexplained cash deposits. The appeal was initially delayed due to the legal heir's unawareness of the CIT(A)'s order, as it was sent to the email of the deceased. The Tribunal found the delay in filing the appeal to be reasonable and admitted the appeal, setting aside the CIT(A)'s order and remanding the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786912 (ITAT-SURAT)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 17-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: MUKESH MANDOWARA
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Sale consideration of property below Jantri Value; Cost of acquisition; Recovery proceedings
• Section: 148; 143(3); 50C; 119(2)(b)

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.45/SRT/2025 Assessment Year: 2012-13 (Hybrid hearing) Lt.Chimanlal Jerambhai Bhagat Legal Heir Minaxi Rakeshbhai Kahar, Flat No.104, Lake Castle, Pal, Nr. Jainam, Surat-395 009 बनाम/ Vs. Income Tax Officer, Ward-1, Vapi -396 191 èथायीलेखासं./जीआइआरसं./PAN/GIR No: ACLPB 6752 H (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Appellant by Shri Mukesh Mandowara, AR राजˢ की ओर से /Respondent by Shri Ajay Uke, Sr-DR सुनवाई की तारीख/Date of Hearing 21/08/2025 उद ्घोषणा की तारीख/Date of Pronouncement 17/11/2025 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), dated 28.02.2024 by the Faceless Appeal Centre (NFAC),Delhi /Commissioner of Income- tax(Appeals) [in short, ‘CIT(A)’] for the assessment year (AY) 2012-13, which in turn arises out of assessment order passed by Assessing Officer (in short, ‘AO’) u/s 143(3) r.w.s 144 of the Act dated 20.12.2019. 2. Grounds of appeal raised by the assessee are as under: “1. The learned CIT(Appeals) erred on facts and in law in sustaining the addition of Capital Gain amounting to Rs.36,48,100/- by invoking the provision of Section 50C of the Income Tax Act without considering the actual cost of acquisition, conversion and development cost. Printed from counselvise.com 2 ITA No.45/Srt/2025 A.Y 12-13 Lt. Chimanlal J Bhagat 2. Ld.CIT(A) erred on facts and in law in sustaining the addition of unexplained cash deposited in bank account of Rs.6,32,000/-. 3. Ld. CIT(A) erred on facts and in law in sustaining the disallowances of exemption of Rs.30,92,620/- capital gain u/s 54B/54D of the Income Tax Act 1961. 4. Your appellant craves leave to add, alter and/or amend all or any of grounds before the final hearing of appeal.” 3. In the instant case, appeal filed by the assessee is delayed by 262 days. The son and legal heir of the deceased-assessee has filed an affidavit for condonation of delay in filing of appeal before this Tribunal. He submitted that the appellate order dated 28.02.2024 was sent e-mail id of his late father who had expired on 20.07.2021. The legal heir was not aware of the order passed by the CIT(A), which had been decided ex parte. Only when the recovery proceedings started and the personnel from Income-tax department visited their house, he came to know about the order and immediately file the appeal before the Tribunal. The Ld. AR of the assessee submitted that the delay was not intentional or deliberate but due to circumstances beyond the control of the legal heir of the assessee. He requested to condone the delay and admit the appeal. 4. On the other hand, Ld. Sr. DR for the Revenue submitted that the Bench may decide the preliminary issue as it thinks fit. 5. We have heard both parties on this preliminary issue of condonation of delay. In the affidavit, it is submitted that the order was sent in the e-mail id of the deceased-father of the legal heir. Only during the recovery proceedings, legal heir could know about the order passed by the CIT(A). Hence, the delay in Printed from counselvise.com 3 ITA No.45/Srt/2025 A.Y 12-13 Lt. Chimanlal J Bhagat filing appeal before Tribunal. Considering all these facts, we find that the legal heir of the assessee was unaware of the proceedings so that he was unable to file appeal before the Tribunal in time. Hence, the reasons given are reasonable and the same would constitute sufficient cause for delay in filing this appeal. We, therefore, condone the delay and admit the appeal for hearing. 6. Facts of the case in brief are that assessee had not filed his return of income for AY 2012-13. The case was reopened by issue of notice u/s 148 dated 29.03.2019. Again assessee did not file any return subsequently assessee filed return declaring income of Rs.1,70,830/- under provisions of Section 119(2)(b) of the Act. In response to the show cause notice, assessee filed reply which are reproduced in assessment order. The explanation of the assessee was not accepted and the AO had added Rs.36,48,100/- on account of short- term capital gain and Rs.6,32,000/- on account of unexplained cash deposit. The order u/s 143(3) r.w.s. 147 was passed on 20.12.2019 determining total income at Rs.44,50,930/-. 7. Aggrieved by the addition made by AO, assessee filed before CIT(A). The CIT(A) has issued five notices fixing the hearing on 16.02.2021, 27.10.2023, 20.11.2023, 30.01.2024 and 06.02.2024. However, none attended on behalf of the assessee nor any written submission was filed. Therefore, the CIT(A) dismissed the appeal for non-compliance. He has also discussed the merits of Printed from counselvise.com 4 ITA No.45/Srt/2025 A.Y 12-13 Lt. Chimanlal J Bhagat the additions and confirmed the findings of AO in absence of any details from the assessee. 8. Further aggrieved by the order of CIT(A) assessee has filed present appeal before the Tribunal. The Ld. AR of the assessee has filed a paper book along with additional ground of appeal by submitting that the CIT(A) has erred in upholding agricultural income of Rs.6,20,597/- as nil. He submitted that the legal heir of the assessee could not attend before CIT(A) because the notices were issued on the e-mail id of the late assessee. He requested that one more opportunity may be given to legal heir of assessee to plead the case on merit. On the other hand, Ld. Sr-DR for the revenue would have no objection if the matter is restored back to the file of CIT(A). 9. We have heard both the parties and perused the materials available on record. The assessee died on 27.08.2021, but most of the notices were issued thereafter. The Ld. AR contended that the notices were issued in the e-mail id of deceased-assessee, due to which there was no compliance before the CIT(A) by his legal heir. Considering the totality of the facts and no objection from the Ld. Sr-DR, we set aside the order of CIT(A) and restore the matter back to the file of CIT(A) for fresh adjudication after giving reasonable and adequate opportunity of being heard to appellant. The appellant may raise the additional ground before CIT(A), who shall decide the same in accordance with law. The appellant is also directed to file necessary details and submission as Printed from counselvise.com 5 ITA No.45/Srt/2025 A.Y 12-13 Lt. Chimanlal J Bhagat needed by the CIT(A) by not taking adjournment without valid reason. The ground is allowed for statistical purposes. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in accordance with Rule 34 of ITAT Rules, 1963 on 17/11/2025 in the open court. Sd/- Sd/- (SUCHITRA R KAMBLE) (BIJAYANANDA PRUSETH) Æयाियक सदÖय/JUDICIAL MEMBER लेखा सदÖय/ ACCOUNTANT MEMBER सूरत /Surat Ǒदनांक/ Date: 17/11/2025 Dkp Outsourcing Sr.P.S* आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ (अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडª फाईल/ Guard File By order/आदेश से, // True Copy // सहायक पंजीकार आयकर अपीलȣय अͬधकरण, सूरत Printed from counselvise.com "