OMPRAKASH,FIROZABAD V. CIT (APPEAL), FIROZABAD

ITA 505/AGR/2024

AI Insights

The case involves twin appeals by the assessee, Sh. Omprakash Raja Ka Tal, for the Assessment Year 2012-13, concerning orders passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeals arose from an assessment order and a rectification order concerning the assessee's failure to file a return of income after selling agricultural land, which was assessed as Long-Term Capital Gains. The primary issues were the classification of the land and the justification for cash deposits. The Tribunal found that the assessee was not adequately represented and decided to provide another opportunity for the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473710 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Keywords: Set aside; Capital asset; Capital Gains; Principle of natural justice; Rectification of order
• Section: 144; 154; 2(14)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.505/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2012-13) & 2. आयकरअपील सं. / ITA No.506/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2012-13) Sh. Omprakash Raja Ka Tal Firozabad 283 203 बनाम/ Vs. ITO 2(2)(3) Firozabad ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. BRWPP-1408-D (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : None ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid twin appeals by assessee for Assessment Year (AY) 2012-13 arises out of separate orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 23-09-2024 in the matter of an order passed by Ld. Assessing Officer [AO] u/s. 144 r.w.s. 147 & rectification order passed u/s 154 of the Act on 20-11-2019 & 14-02-2020 respectively. At the time of hearing, none appeared for assessee. Accordingly, the appeals were 2 proceeded with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeals. 2. In the assessment order, Ld. AO made addition of cash deposits for Rs.25 Lacs for want of any representation from the assessee. The assessee sold certain land on 29-07-2011 for Rs.52.63 Lacs as against stamp duty valuation of Rs.53.05 Lacs. The assessee did not file its return of income. Accordingly, the same was brought to tax as Long- Term Capital Gains and the gains were assessed at Rs.21.35 Lacs. The assessee sought rectification of the order which was rejected on 14-02- 2020. Aggrieved, the assessee assailed both the orders in first appeal. 3. During first appeal, the assessee filed partial submissions and stated that the land was an agricultural land. The Ld. CIT(A) held that the land was a capital asset u/s 2(14) since it was situated within 8 km from the municipal limits of Firozabad. The plea on cash deposit was also rejected. The appeal against rectification order met with the same fate. Aggrieved, the assessee is in further appeals before us. 4. We find that the claim of the assessee that the land sold by him was agricultural land could not be established. Similarly, no acceptable explanation could be furnished by the assessee towards cash deposit. Under these circumstances, keeping in mind the principles of natural justice and considering the possibility of communication gaps at various levels in faceless regime, we deem it fit to afford another opportunity of hearing to the assessee to substantiate its case before Ld. CIT(A). Accordingly, the impugned orders are set aside and both the appeals are restored back to the file of Ld. CIT(A) for de novo adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith. 3 5. Both the appeals stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "