RAKESH KUMAR ,PATNA V. ITO WARD6(2) PATNA , PATNA

ITA 491/PAT/2025

AI Insights

This case involves an appeal by the assessee, Rakesh Kumar, against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had rejected the assessee's appeal due to a significant delay in filing. The assessee, engaged in the real estate business, had his income assessed as Rs. 20,24,862 as Long Term Capital Gain (LTCG) under section 144 of the Income Tax Act, 1961, due to non-cooperation in the reassessment process. The assessee's appeal was initially dismissed by the CIT(A) for not condoning the delay of 438 days in filing the appeal, without considering the merits of the case. The Income Tax Appellate Tribunal (ITAT) decided to remit the case back to the AO for a fresh assessment, considering the circumstances presented by the assessee, including the impact of the COVID-19 pandemic.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830601 (ITAT-PATNA)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 30-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANAB ADAK
• Assessee Lawyers: ATUL DAYAL
• Keywords: Opportunity of being heard
• Section: 148; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH”, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No. 491/PAT/2025 Assessment Year : 2015-16 Rakesh Kumar, 18 Road No. 5 East Patel Nagar, Patna – 800023, Bihar [PAN: ANQPK4418B] Vs. Income Tax Officer, Ward 6(2), Patna APPELLANT RESPONDENT Assessee by : Sh. Atul Dayal, Adv. Revenue by : Sh. Manab Adak, JCIT Date of hearing : 15.01.2026 Date of Pronouncement : 20.01.2026 O R D E R This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)] dated 24.08.2025, DIN & order No. ITBA/NFAC/S/250/2025-26/1080135583(1). 2. Briefly stated the facts of the case are that the assessee engaged in real estate business to obtain development rights from land owners by entering into the Land Development Agreement (LDA) between owner of the land and its developers to construct immovable property in terms of building and land appurtenant thereto. The rights of ownership of the Printed from counselvise.com 2 ITA No. 491/Pat/2025 Rakesh Kumar land is transferred by the land owner against receipt of ownership of a portion of property constructed while remaining portion of the constructed property is apportioned by the builder against the cost of development incurred by the developer. The assessee filed return of income at Rs. 3,06,294/- and the case was reopened u/s 147/148 of the Act. In response to the notice u/s 148 of the Act she did not file any return of income and various other opportunities were provided to the assessee but there was no response. Therefore, the AO on the basis of material available before him computed the income at Rs. 20,24,862/- as LTCG and passed order u/s 144 on 26.11.2019. 3. Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A) with a delay of 438 days and reasons was also explained. The Ld. CIT(A) did not entertain the condonation application and rejected the explanation submitted by the assessee. The Ld. CIT(A) noted that the assessee filed condonation petition with a delay of 21 days in form of letter only without support of any affidavit and noted that the date of order is 26.11.2019. However, the assessee claimed to be service of order is 15.02.2021 in the form 35 and assessee has not demonstrated how the assessee found assessment order. Considering the reasons given therein and he dismissed the appeal of the assessee for not condoning the delay without going into the merits of the case. 4. Aggrieved from the above order, the assessee is in appeal before the ITAT. 5. The Ld. Counsel reiterated the reasons given for delay in filing the appeal before the Ld. CIT(A) and submitted that the Ld. CIT(A) has not condoned the delay and he further submitted that notice issued by the AO was not received by the assessee and the intention of the assessee was not to disrespect the notices issued by the revenue authorities and he submitted that Covid-19 pandemic was started in the area of the Printed from counselvise.com 3 ITA No. 491/Pat/2025 Rakesh Kumar residence of the assessee therefore, the assessee could not file the return of income within the stipulated period and requested that one more opportunity granted to the assessee. 6. The Ld. DR relied on the order of lower authorities. 7. Considering the rival submissions and perusing the material available on record and order of authorities below. I noted that the reassessment was completed u/s 144/147 of the Act for non-cooperation from the assessee’s side and appeal was filed with a delay of 438 days before the Ld. CIT(A) which was not condoned. Considering the submission of the Ld. counsel and in the interests of justice, I remit this issue get to the file of AO for denovo decision as per law after giving a reasonable opportunity of being heard to the assessee and the assessee is directed to substantiate its case with cogent documents in support of the case and not to seek any unnecessary adjournments for early disposal of the case. We make it clear that in case of failure no second leniency shall be granted to the assessee. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 20.01.2026 Sd/- (Laxmi Prasad Sahu) Accountant Member Dated: 20.01.2026 AK, Sr. P.S. Printed from counselvise.com 4 ITA No. 491/Pat/2025 Rakesh Kumar Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "