RAJESH ,NOIDA V. ITO WARD-5(3)(1), GAUTAM BUDH NAGAR

ITA 102/DEL/2025

AI Insights

The case involves Rajesh, a resident individual engaged in agricultural activities and a handicapped person, who appealed against the order of the NFAC pertaining to the assessment year 2013-14. The appeal challenged the assessment order under Sections 147 and 144 of the Income Tax Act, 1961, which was based on the alleged sale of an immovable property at a consideration significantly lower than the circle rate. The Tribunal noted procedural lapses in the handling of the assessee's documents and the failure of the NFAC to consider these in their decision. The Tribunal's decision to allow the appeal for statistical purposes was based on the need to ensure justice and proper consideration of the assessee's submissions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711579 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: PRINTED FROM COUNSELVISE.COM
• Keywords: Condonation of delay; Sale consideration of property below Jantri Value; Fair market value; Procedural lapse
• Section: 147; 148; 50C

Judgement Text

"ITA No.103/Del/2025 A.Y. 2013-14 Rajesh Vs. ITO 1 THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “A”:NEW DELHI BEFORESHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.102/Del/2025 Assessment Year: 2013-14 Rajesh H. No. 50, Sultanpur Sector-128, Noida Vs. ITO Ward- 5 (3) (1) Gautam Budh Nagar PAN :BNEPR3429L (Appellant) (Respondent) ORDER PERSUDHIR KUMAR, JUDICIAL MEMBER: The assessee preferred the captioned appeal, challenging the order dated 13.09.2024passed by theNational Faceless Appeal Centre (herein after referred {NFAC}pertaining to assessment order dated Assessee by None Revenue by Sh. Ajay Kumar Arora, Sr. DR Date of hearing 21.07.2025 Date of pronouncement 25.07.2025 Printed from counselvise.com ITA No.103/Del/2025 A.Y. 2013-14 Rajesh Vs. ITO 2 30.03.2022for Assessment year 2013-14 under Sections 147 rw.s. 144 of the Income Tax Act, 1961 (“The Act for short”). 2. The assessee has raised the flowing grounds in appeal: 1. That the assessment order passed u/s 147 read with Section 144 of the Income Tax Act was bad in law. 2. Initiation of proceedings u/s 148 was completely on erroneous facts, without application of mind, so the same should be decided as void ab initio. 3. That the failure to invoke the provisions of Section 50C of the Income Tax Act for determining the accurate market value of the property was a serious procedural lapse, rendering the assessment order flawed and unjustifiable. 4. That the appellant had already filed reports from Registered Valuer under Section 50C of the Income Tax Act, but due to a filing error, these documents were mistakenly submitted in the penalty order appeal rather than in the quantum appeal. Despite being filed, the CIT(A) did not consider these reports in the penalty appeal, which further prejudiced the appellant's case. 5. That the first appellate authority also failed to appreciate the documentary evidence as filed before the same. Thus, the impugned order has no merit as provided under Section 250 of the Act. Printed from counselvise.com ITA No.103/Del/2025 A.Y. 2013-14 Rajesh Vs. ITO 3 6. If necessary, additional/ revised /modified grounds of appeal shall be filed at the time of hearing of the instant Appeal. 3. The assessee has filed the application for condonation of delay for 37 days. In the application the assessee has stated that due to illness he has not filed the appeal within prescribed time limit. The assessee has shown sufficient cause for not filing the appeal within time limit. Therefore, we allow the application for condonation of delay. Delay is condoned and appeal is admitted for adjudication. 4. The assessee is a resident individual engaged in agricultural activities and also a handicapped person. The assessment proceedings were initiated against the assessee under the provision of Section 147 and Section 144 of the Income Tax, Act 1961 on the basis that the assessee had allegedly sold an immovable property for Rs.35,00,000 during the relevant financial year. The initiation of proceedings was grounded solely on the premises that the sale consideration declared by the assessee was substantially lower than the circle rate of Rs.82,61,000/- applicable to the property in question. It is pertinent to note that the determination of the fair market value of the property, as per circle rate, was utilized by AO. Aggrieved by the order of the AO, the assessee is in appeal before CIT(A), the CIT(A) dismissed the appeal of the assessee by observing as under: Printed from counselvise.com ITA No.103/Del/2025 A.Y. 2013-14 Rajesh Vs. ITO 4 5.1. The assessee is on the appeal before this office against the order passed under Section 147 of the Income Tax, Act. 5.2 The assessee was provided multiple opportunities by this office to submit documents and make submissions in response to the appeal filed. However, the assessee has not exercised this option despite multiple reminder. The table below indicates the dates and the compliances status of the various notices issued. 5. The Ld. DR has relied upon the orders of the authorities below. 6. We have heard the ld. DR and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. NFAC the assessee did not file his submissions before the authority, for which the appeal was dismissed in non-compliance by the NFAC. 7. Since in the instant case the Ld. NFAC has dismissed the appeal for non-compliance therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. NFAC with a direction to grant one final opportunity to the assessee to substantive its claim and decide the issue as per fact and law. The assessee is also directed to co-operate with the proceedings before Ld. NFAC. The grounds raised by the assessee are accordingly allowed for statistical purposes. Printed from counselvise.com ITA No.103/Del/2025 A.Y. 2013-14 Rajesh Vs. ITO 5 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 25/07/2025. Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 25 July,2025. Neha, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "