MRS. SHARFDEEN FARIDHA BEGUM,THANJAVUR V. ITO, NCC-1, THANJAVUR

ITA 2361/CHNY/2024

AI Insights

The case involves Mrs. Sharafdeen Faridha Begum, an NRI and owner of a supermarket, who appealed against the order of the CIT(A), which confirmed the Assessing Officer's decision on long-term capital gains and other additions under various sections of the Income Tax Act. The initial assessment for the year 2014-15 included substantial capital gains from the sale of properties, which the assessee did not report. The CIT(A)'s earlier dismissal of the appeal due to non-compliance by the assessee was contested, leading to the ITAT's decision to remit the case back for a fresh hearing, acknowledging the assessee's difficulties in participating due to her NRI status and recent bereavement.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472168 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-11-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 09-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. MURALI
• Assessee Lawyers: K. MEENAKSHI SUNDARAM; ITP
• Keywords: Sale consideration of property below Jantri Value; Capital Gains; Principle of natural justice
• Section: 143(3); 50C; 40(a)(ia)

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी जॉजᭅ जॉजᭅ के, उपा᭟यᭃ एवं ᮰ी एस.आर.रघुनाथा, लेखा सद᭭य के समᭃ BEFORE SHRI GEORGE GEORGE K, HON’BLE VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2361/Chny/2024 िनधाᭅरण वषᭅ / Assessment Year: 2014-15 Mrs. Sharafdeen Faridha Begum, No. 2889, Srinivasam Pillai Road, Thanjavur – 613 001. [PAN: AAAPF-4012-H] v. Income Tax Officer, Circle -1, Thanjavur. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri. K. Meenakshisundaram, ITP ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. M. Murali, CIT सुनवाई कᳱ तारीख/Date of Hearing : 26.11.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 28.11.2024 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 31.07.2024 and pertains to assessment year 2014-15. 2. The assessee is an individual running a supermarket in the name of Oriental Super Market. The assessee filed its :-2-: ITA. No: 2361/Chny/2024 return of income on 01.04.2015 for the assessment year 2014- 15, declaring an income of Rs.15,30,150/-. As per the information with the Assessing Officer, the assessee sold four properties during the year under consideration, wherein the sale value as per the documents attracts applicability of section 50C of the Act and reopened the assessment by issuing a notice u/s. 148 of the Act dated 21.09.2017. The Assessing Officer concluded the assessment u/s. 143(3) r.w.s. 147 of the Act by computing long term capital gains at Rs.4,27,90,836/- adopting the guideline value as per section 50C of the Act. Since, the assessee had not offered any income under the head capital gains, the Assessing Officer added the value of sale consideration as per section 50C of the Act, along with certain other additions u/s. 40(A)(3) of the Act and u/s. 40(a)(ia) of the Act. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld.CIT(A) and the same was dismissed by the ld.CIT(A) as there was no compliance from the assessee to the notices issued by the ld.CIT(A)-1, Trichy and passed an order dated 10.01.2020. Further aggrieved by the order of the ld.CIT(A)-1, Trichy, the assessee filed an appeal before this Tribunal and the Tribunal has set aside the order of the ld.CIT(A) and remitted back the file to the :-3-: ITA. No: 2361/Chny/2024 ld.CIT(A) to adjudicate the appeal on denovo in accordance with law vide its order in ITA No. 678/Chny/2020 dated 07.12.2021. 3. As per the directions of the ITAT (Supra), the ld.CIT(A) provided with several opportunities of hearing and called for written submissions and documentary evidence in support of the grounds of appeal filed by the assessee from 25.01.2023 to 22.07.2024. However, the assessee did not respond for any of the notices and hence, the ld.CIT(A), NFAC left with no option decided the appeal based on the available information on merits and confirmed the order of the Assessing Officer vide order dated 31.07.2024. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us. 4. At the outset the ld.AR for the assessee stated that the assessee had not participated in the appellate proceedings with the first appellate authority and hence, prayed for one more opportunity before the ld.CIT(A) to prosecute the appeal. Further, he stated that since the assessee is NRI and her husband has expired, she could not provide the details required for the appeal before the first appellate authority. :-4-: ITA. No: 2361/Chny/2024 5. Per contra, the ld.DR submitted that the assessee has been given an opportunity both by the ld.CIT(A) and also by this Tribunal earlier and the assessee has failed to participate in the appellate proceedings and hence, the appeal may please be dismissed. 6. We have heard the rival contentions and gone through the orders of the lower authorities. Admittedly, the woman assessee is a NRI and the ld.CIT(A) has passed an order by confirming the order of the Assessing Officer without participation of the assessee. We note that the ld.AR has undertaken to participate in the appellate proceedings without fail, if one more opportunity is given before the ld.CIT(A) on behalf of the assessee from time to time as and when called for. Therefore, in the interests of natural justice and fair play, we deem it fit to remit back the file to the ld.CIT(A) by setting aside the order of the ld.CIT(A) to adjudicate this appeal denovo in accordance with law. However, the assessee has failed to participate in the appellate proceedings for the second time and hence, we levy the cost of Rs.5,000/- to be paid to State Legal Aid Authority, Hon’ble High Court of Madras and produce proof of payment of cost to the Registry within 30 days :-5-: ITA. No: 2361/Chny/2024 from the date of receipt of this order. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 28th November, 2024 at Chennai. Sd/- (जॉजŊ जॉजŊ क े) (GEORGE GEORGE K) उपाȯƗ /VICE PRESIDENT Sd/- (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/ACCOUNTANT MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated, the 28th November, 2024 JPV आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT – Madurai 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "