LAXMI PATI SHARMA,GURGAON V. INCOME TAX OFFICER, INCOME TAX DEPARTMENT NOIDA

ITA 2764/DEL/2024

AI Insights

The case involves an appeal by Laxmi Pati Sharma against the order of the Commissioner of Income Tax (Appeals), which upheld the addition of Rs.33,00,000 as long-term capital gains for the assessment year 2012-13. The Assessing Officer had initially made this addition based on AIR information about the sale of immovable property, which the assessee did not contest due to non-filing of a return and non-compliance with notices under sections 148 and 142(1) of the Income Tax Act, 1961. The CIT(A) upheld the AO's decision in ex-parte proceedings as no representative appeared for the assessee. The Tribunal noted the death of the assessee and the subsequent non-appearance of legal heirs, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298874 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-09-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 29-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANI BANSAL
• Keywords: Set aside; Cost of acquisition; Capital Gains
• Section: 148; 144; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एसएमसी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2764/िदʟी/2024 (िन.व. 2012-13) ITA No.2764/DEL/2024 (A.Y.2012-13) Laxmi Pati Sharma, L 16/2A, DLF Phase-2, Haryana 122022 PAN: AOSPS-5811-H ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Aaykar Bhawan, A-2D, Sector-24, Gautam Budh Nagar, UP 201307 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Ms. Shivani Bansal , Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 10/09/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 29/11/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 18.12.2023, for assessment year 2012-13. 2. The assessee in appeal is against the addition of Rs.33,00,000/- on account of capital gains. The facts of the case as emanating from records in brief are: The Assessing Officer (AO) received AIR information regarding sale of immovable 2 ITA No. 2764/DEL/2024 (A.Y.2012-13) property amounting to Rs.1,65,00,000/-. As per the records no return of income was filed by the assessee for AY 2012-13. The AO issued notice u/s. 148 of the Income Tax Act, 1961(hereinafter referred to as ’the Act’) to the assessee on 29.03.2019 which was duly served through speed post. In compliance of the said notice no return of income was filed by the assessee. The Assessing Officer, thereafter, issued statutory notice u/s. 142(1) of the Act, however, the same remained unattended by the assessee. The AO was constrained to complete assessment u/s. 144 of the Act. In assessment proceedings, the AO observed that during the period relevant to assessment year under appeal, the assessee along with other two joint owners had sold the property for a total consideration of Rs.1,65,00,000/-. The assessee’s 1/3rd share in the said sale consideration was Rs.55,00,000/-. The Assessing Officer estimated indexed cost of acquisition at Rs.22,00,000/- and made addition of Long Term Capital Gains Rs.33,00,000/-. 3. Against the assessment order, the assessee filed appeal before the CIT(A). None appeared to represent the assessee before the CIT(A), hence, the CIT(A) in ex-parte proceedings upheld the addition made by the AO. Now, the assessee is in second appeal before the Tribunal. 4. A perusal of the impugned order reveals that the assessee Laxmi Pati Sharma is stated to have died on 08.04.2019. The CIT(A) has mentioned the fact of death of Laxmi Pati Sharma from the statement filed in proceedings before the First Appellate Authority. It was further stated before the CIT(A) that notice u/s. 148 of the Act was received by legal heirs of Laxmi Pati Sharma on 31.12.2019. However, no documentary evidence was produced before the Authorities below 3 ITA No. 2764/DEL/2024 (A.Y.2012-13) to substantiate the contention. The present appeal has been filed through legal Representative of Late Shri Laxmi Pati Sharma. Considering entire facts of the case, I deem it appropriate to grant an opportunity to the assessee to make submissions before the First Appellate Authority and to substantiate her contentions. The CIT(A) after affording reasonable opportunity of making submissions to the assessee shall pass a speaking order, in accordance with law. 5. The assessee/legal heirs of the assessee after service of notice shall appear before the CIT(A), without fail. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Friday the 29th day of November, 2024. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 29/11/2024 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. 4 ITA No. 2764/DEL/2024 (A.Y.2012-13) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "