PRATUL SAHA,KOLKATA V. ITO, NFAC, DELHI

ITA 998/KOL/2023

AI Insights

The case involves Pratul Saha, who did not file his income tax return for the Assessment Year 2013-14 despite having sold a property for Rs. 4,70,00,000. The property was assessed at a fair market value of Rs. 22,02,77,355 for stamp duty purposes. The Income Tax Officer (ITO) treated the undisclosed income from the capital gain as Rs. 2,44,75,262 and assessed it under section 143(3) of the Income Tax Act, 1961. The CIT(Appeals) upheld this assessment after the assessee failed to provide satisfactory evidence or documentation to support his claims. Aggrieved by the decision, the assessee appealed to the ITAT, which decided to remit the case back to the CIT(Appeals) to ensure the principles of natural justice were met.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 27089 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Fair market value; Principle of natural justice
• Section: 147; 144; 143(3); 142(1)

Judgement Text

" ITA No. 998/KOL/2023 (A.Y. 2013-2014) Pratul Saha 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 998/KOL/2023 Assessment Year: 2013-2014 Pratul Saha,……………………………..…………Appellant 60A, Settpadda, Chakraberia Road, North Bhowanipore, Kolkata-700020 [PAN:APMPS3576A] -Vs.- Income Tax Officer,…..………………………...Respondent NFAC, Delhi, National e-Assessment Centre, Delhi-110003 Appearances by: Shri Rakesh Jain, A.R., appeared on behalf of the assessee Shri Sailen Samadder, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: January 01, 2025 Date of pronouncing the order: January 28, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President(KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 14th December, 2022 for the assessment Year 2013-14. ITA No. 998/KOL/2023 (A.Y. 2013-2014) Pratul Saha 2 2. Brief facts of the case are that the assessee is an individual, who did not file his return of income for A.Y. 2013-14. Information received from JDIT(OSD)(I&CI), Circle-2(1), Kolkata that the assessee has jointly sold property in consideration of Rs.4,70,00,000/- (one-nineth share) on 16.10.2012. The Addl. Dist. Sub-Registrar has determined the fair market value of the property for levying stamp duty at Rs.22,02,77,355/-. Since the assessee did not file his return of income, hence the tax prospect in the hands of assessee arising out of the above capital gain had not been disclosed by the assessee. Therefore, ld. Assessing Officer treated, being one nineth share of assessee, undisclosed income at Rs.2,44,75,262/- chargeable to tax in the hands of assessee. In reply to Notice under section 148, the assessee filed return of income on 28.03.2019 declaring total income of Rs.10,66,990/- as capital gain. Thereafter notice under section 142(1) of the Act was issued by the ld. Assessing Officer to the assessee on different dates alongwith questionnaire requiring information/details, but the assessee has not furnished any satisfactory reply/ documentary evidence. Finally, ld. Assessing Officer assessed income at Rs.2,78,68,430/- under section 143(3) of the Income Tax Act, 1961. 3. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The assessee did not submit documents in support of his claim inspite of providing multiple opportunities to the assessee. Thereafter the ld. Commissioner (Appeals) had no other option except passing the order on merits based on the material available on record. The ld. CIT(Appeals) dismissed the ITA No. 998/KOL/2023 (A.Y. 2013-2014) Pratul Saha 3 appeal filed by the assessee confirming the addition made by the ld. Assessing Officer. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. It was the submission of the assessee that ld. CIT(Appeals) did not consider his case on merit and just upheld the order passed by the ld. Assessing Officer. He pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 5. On the other hand, ld. D.R. brought to our notice that the assessee did not participate during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order under section 147 read with section 144 of the Act. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, inspite of service of notice, the assessee did not turn up to substantiate his case before the Tribunal. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 6. We have heard both the sides and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At ITA No. 998/KOL/2023 (A.Y. 2013-2014) Pratul Saha 4 the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 28/01/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 28th day of January, 2025 Copies to :(1) Pratul Saha, 60A, Settpadda, Chakraberia Road, North Bhowanipore, Kolkata-700020 (2) Income Tax Officer, NFAC, Delhi, National e-Assessment Centre, Delhi-110003 (3) CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "